Updated October 2026 for the 2026–27 financial year.
What is Division 293 tax?
Division 293 tax is an extra 15% tax on concessional (before-tax) super contributions for people with high incomes. It applies when your income plus your concessional contributions is more than $250,000. Together with the 15% your fund already pays, your contributions are effectively taxed at 30%.
Only the part over $250,000 is taxed. If your income is $240,000 and you have $30,000 of contributions, the total is $270,000, so Division 293 applies to $20,000, not your full $30,000.
How the ATO works out Division 293 income
The ATO adds together:
- your taxable income, which excludes salary sacrifice
- reportable fringe benefits
- net investment losses
- your low tax contributions, which are generally your concessional contributions up to the cap.
The tax is 15% of whichever is smaller: your low tax contributions, or the amount your total is over $250,000. Excess concessional contributions are taxed differently and aren't included.
Paying the bill
The ATO sends a Division 293 notice after you lodge your tax return, often months later. You can pay it yourself or use a release authority to have your super fund pay it from your super. Members of some defined benefit schemes have the tax deferred instead.
Is it still worth contributing?
Usually yes. Even at 30%, contributions are taxed less than your 47% top marginal rate including Medicare, so each $1,000 contributed still saves about $170. Use the salary sacrifice calculator to see your numbers.
Frequently asked questions
What is the Division 293 threshold for 2026–27?
The threshold is $250,000. It has not changed since 2017–18 and is not indexed.
Does salary sacrifice count for Division 293?
Yes. Salary sacrifice reduces your taxable income but is added back as a concessional contribution, so your Division 293 income stays the same.
Can I pay Division 293 tax from my super?
Yes. You can ask the ATO to release money from your super to pay the debt using a release authority.
Does Division 293 apply to non-concessional contributions?
No. It only applies to concessional (before-tax) contributions such as employer super, salary sacrifice and deductible personal contributions.
When do I get a Division 293 notice?
The ATO issues a notice after it has both your tax return and your fund's contribution reports, which can be several months after you lodge.
About this calculator
This calculator gives general information only. It doesn't consider your personal circumstances and isn't financial or tax advice. It assumes you're an Australian tax resident and uses 2026–27 rates published by the ATO. Check your figures in myGov and speak to a registered tax agent or licensed financial adviser before acting. Your inputs stay in your browser and are never sent anywhere.