What is Division 293 tax?
Division 293 tax is an extra 15% tax on concessional (before-tax) super contributions, charged to people whose combined income and contributions exceed $250,000 in a year. It effectively lifts the tax on those contributions from 15% to 30% for high earners — so super is still tax-advantaged above the threshold, just less so.
By Justin Porrins, CFP® · SMSF Specialist Adviser™ · Last reviewed 25 June 2026
Who pays it
The ATO adds your income (for surcharge purposes) to your low-tax super contributions; if the total is over $250,000, the extra 15% applies to the contributions above the threshold. You’re assessed after you lodge your return, and can pay personally or have the amount released from super.
Why it matters for high earners
Plenty of medical specialists, executives and business owners cross $250,000 and are caught off guard by the bill. It rarely makes concessional contributions a bad idea — they’re often still worthwhile — but it changes the maths, and it’s exactly the kind of thing a structure review should be modelling, not discovering after the fact.
Common questions
Can I avoid Division 293 tax?
It applies by formula once you’re over the $250,000 threshold, so it can’t simply be avoided. Contribution timing, structure and how income is taken can change your exposure — which is a planning question, not a loophole. General information only.
How is Division 293 tax paid?
You can pay it from your own funds, or elect to release the amount from your super to cover it. The ATO issues the assessment after your tax return is processed.
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