Division 293 tax | |Wilson & Assoc Chartered Accountants

FAQ on Division 293 tax

1. What is Division 293 Tax?

Division 293 Tax is a surcharge imposed on high-income earners to reduce their tax benefits on their superannuation contributions, to a similar level as those on lower income.

2. Who is affected by Division 293 Tax?

Division 293 Tax affects individuals whose income exceeds the relevant threshold. The current threshold is $250,000. Income for this purpose (Division 293 income) includes taxable income and concessional super contributions.

3. How is Division 293 Tax calculated?

Division 293 Tax is calculated at 15% of the income in excess of the threshold, or concessional contribution, whichever is the lower.

4. Are there any exemptions or concessions available for Division 293 Tax?

There are no specific exemptions or concessions available for Division 293 Tax.

5. How and when is Division 293 Tax assessed?

Division 293 Tax is assessed when individuals lodge their income tax return for the relevant financial year.  It is usually payable about 4 weeks of the assessment date.

6. What options do I have for paying Division 293 Tax?

Division 293 Tax can be paid out of pocket or from your superannuation account.

7. How we can help

Wilson & Assoc Chartered Accountants can provide a number of strategies and structures to minimise your Division 293 tax.

Disclcaimer: The information provided within this article is general information only.  None of the comments in these notes are intended to be advice, whether legal, financial product or professional. You should obtain specific advice regarding your particular circumstances from a tax or legal professional.

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