Division 293 Calculator: Estimate Your Tax Surcharge

The Division 293 calculator works out the additional 15% tax on concessional superannuation contributions for high-income earners. You enter your taxable income, reportable fringe benefits, and concessional super contributions, and it returns your Division 293 taxable income, the threshold excess, and the surcharge amount you owe.

Formula

The Division 293 tax is calculated using a simple formula:

Division 293 taxable income = Taxable income + Reportable fringe benefits + Concessional super contributions

Excess = max(Division 293 taxable income − $250,000, 0)

Division 293 tax = Excess × 15%

Variables:

• Taxable income – your assessable income after deductions, as shown on your tax return (in AUD).
• Reportable fringe benefits – the grossed-up value of certain fringe benefits (in AUD).
• Concessional super contributions – before-tax contributions to super, including employer SG, salary sacrifice, and personal deductible contributions (in AUD).

The result is the additional tax you pay on top of your normal income tax. It is not a tax on your total income, only on the portion of your concessional contributions that pushes you over the threshold.

Worked Example

Using the default values from the calculator above:

• Taxable income: $180,000
• Reportable fringe benefits: $0
• Concessional super contributions: $25,000

Step 1: Add them together:

$180,000 + $0 + $25,000 = $205,000

Step 2: Since $205,000 is below $250,000, the excess is $0.

Step 3: Division 293 tax = $0 × 15% = $0

In this case, you pay no Division 293 tax because your total income is below the threshold. To see a nonzero result, try a taxable income of $230,000 and super contributions of $30,000: the total becomes $260,000, the excess is $10,000, and the tax is $1,500.

When Does Division 293 Apply?

Division 293 was introduced in 2012 to reduce the tax advantage of concessional super contributions for high-income earners. It applies when your Division 293 income (the sum above) exceeds $250,000 in a financial year. The threshold is not indexed, so over time more people may be caught by it.

The surcharge is 15% of the lesser of:

• Your concessional contributions for the year, or
• The amount by which your Division 293 income exceeds $250,000.

This means you are never taxed on more than your actual concessional contributions. If your income is $260,000 and you have $20,000 in contributions, the excess is $10,000, so you pay 15% on $10,000, not on the full $20,000.

How to Use the Calculator

To get an accurate estimate, you need to know three figures from your tax return or payment summary:

1. Your taxable income (box on your notice of assessment).
2. Any reportable fringe benefits (shown on your payment summary).
3. Your concessional super contributions (from your fund’s annual statement or your tax return).

Enter these values into the calculator. The result is the amount of Division 293 tax you would owe for the year. This is an estimate – the ATO calculates the exact amount after you lodge your tax return and issues a notice of assessment.

If you receive a Division 293 notice, you can choose to pay the tax from your super fund or personally. The notice will explain your options and deadlines.

Common Mistakes and Misconceptions

One common mistake is confusing concessional contributions with total super balance. Division 293 applies only to concessional contributions (before-tax), not to after-tax contributions or earnings within super.

Another error is forgetting to include reportable fringe benefits. These are added to your income for Division 293 purposes, even though they are not part of your taxable income. If you have a salary-packaged car or other fringe benefits, they can push you over the threshold.

Some people think the $250,000 threshold is based on taxable income alone. It is not – it is based on the sum of three components. For example, a person with $240,000 taxable income and $15,000 in super contributions will have a Division 293 income of $255,000 and be subject to the surcharge on $5,000.

Rounding errors can also occur if you use monthly figures instead of annual. Always use the full financial year amounts.

Limitations of the Calculator

This calculator provides an estimate based on the standard formula. It does not account for:

• Carry-forward unused concessional contributions from previous years.
• Low-income super tax offset (LISTO) or other offsets that might reduce the effective tax.
• Changes due to the transfer balance cap or other super reforms.

The ATO’s official calculation may differ slightly if you have other income items that affect your Division 293 income, such as net investment losses or certain trust distributions. For a definitive figure, refer to your notice of assessment.

The threshold is fixed at $250,000 and has not changed since 2012. It is not indexed to inflation, so more people are likely to be affected over time.

Alternatives and Related Concepts

If you are close to the threshold, you might consider strategies to reduce your Division 293 income, such as:

• Reducing salary sacrifice contributions to stay below the threshold.
• Making personal deductible contributions only in years when your income is lower.
• Using after-tax (non-concessional) contributions instead, which are not subject to Division 293.

However, these strategies have their own limits and tax implications. It is advisable to consult a tax professional before making decisions.

Related taxes include the excess contributions tax (for exceeding the concessional cap) and the Div 293 surcharge on top of that. The calculator above focuses solely on the Division 293 surcharge.

Frequently Asked Questions

What is the Division 293 threshold for 2024-25?
The threshold is $250,000 of Division 293 income. It has remained unchanged since 2012 and is not indexed.

Do I have to pay Division 293 tax if my income is exactly $250,000?
No. The surcharge applies only to income above $250,000. If your Division 293 income is exactly $250,000, the excess is $0 and no tax is owed.

Can I pay Division 293 tax from my super fund?
Yes. The ATO allows you to elect to release up to 85% of the tax from your super account. The remaining 15% must be paid personally. This election is made through your myGov account or by lodging the relevant form.

What happens if I don’t pay Division 293 tax?
If you do not pay by the due date, the ATO will charge interest and may take recovery action. You can also request a payment plan if you are unable to pay in full.

Does Division 293 apply to all super contributions?
No. It applies only to concessional contributions – those made before tax, such as employer contributions and salary sacrifice. Non-concessional (after-tax) contributions are not included.

Is there a way to avoid Division 293 tax?
You can reduce your concessional contributions or your taxable income, but there is no legal way to avoid the surcharge if your income exceeds the threshold. Some strategies, like timing contributions, can help manage the impact.

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in income | Taxable income | $ | 180000 | 0
in fringe | Reportable fringe benefits | $ | 0 | 0
in super | Concessional super contributions | $ | 25000 | 0
out div293_income | Division 293 taxable income | $ | income + fringe + super | 0
out excess | Amount above threshold | $ | max(div293_income - 250000, 0) | 0
out tax | Division 293 tax | $ | excess * 0.15 | 0