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Division 293 tax

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.

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Diana Morris founded The SMSF Accountant in 2010. Diana is a member of the Institute of Chartered Accountants, holds a current public practice certificate, and is a registered tax agent. Diana has completed a Bachelor of Commerce degree and a Graduate Diploma of Chartered Accounting.