From 1 July 2012, Division 293 tax will be applied to certain superannuation contributions to reduce the concessional tax treatment of these contributions made for very high income individuals.
The high income threshold is $300,000.
An individual’s income is added to certain superannuation contributions and compared to the high income threshold.
Div 293 tax is payable at a rate of 15%, on the excess over the threshold or on the superannuation contributions – whichever is less.
