How Division 293 tax is worked out
| Step | What happens |
|---|---|
| Income for Division 293 purposes | Taxable income + reportable fringe benefits + low-tax contributions (+ a few less common items, such as net investment losses) |
| Threshold | $250,000 — fixed since 2017–18, not indexed |
| Excess | Income for Division 293 purposes − $250,000 (if positive) |
| Taxed amount | Whichever is less: the excess, or your low-tax contributions |
| Tax payable | 15% of the taxed amount |
Source: Australian Taxation Office, Division 293 tax on concessional contributions by high-income earners. Income for Division 293 purposes is taxable income plus reportable fringe benefits plus low-tax contributions, and the ATO's definition also includes net investment losses and a few less common items that this calculator doesn't include. The concessional contributions cap itself is $30,000 for 2024–25 onwards — enter your actual low-tax contributions above rather than assuming a cap, since salary sacrifice and employer super can push this higher or lower.
Questions people actually ask
What counts as income for Division 293 purposes?+
The ATO's definition adds together your taxable income, reportable fringe benefits, low-tax (concessional) super contributions, net investment losses (financial and rental) and a few less common items like net trust distribution tax amounts. This calculator uses taxable income plus reportable fringe benefits plus low-tax contributions, the components that apply to almost everyone.
Is the $250,000 threshold indexed each year?+
No. Unlike the income tax brackets, the Division 293 threshold has stayed at $250,000 since it was introduced for the 2017–18 income year and hasn't been indexed since.
Why isn't Division 293 tax just 15% of my contributions?+
Because it only applies to the portion of your low-tax contributions that pushes your income over $250,000. If your income (including contributions) is $10,000 over the threshold but your low-tax contributions were $27,500, only the $10,000 excess is taxed at 15% ($1,500), not the full contribution amount.