Division 293 tax calculator
Whether a high-income surcharge applies to your retirement contributions, and on how much.
Division 293 tax
Estimate$3,750.00
an extra 15% on 25,000 of contributions
- Income for Division 293
- $275,000
- Standard contributions tax
- $4,500.00
- Effective rate on contributions
- 27.5%
| Taxable income | $245,000 |
|---|---|
| Concessional contributions | $30,000 |
| Combined | $275,000 |
| Threshold | -$250,000 |
| Taxed at the extra 15% | $25,000 |
- Only the part of your contributions that sits above the threshold is taxed twice.
The charge applies only to contributions above the income threshold — $250,000 in Australia — so being $5,000 over means $5,000 is taxed, not the whole contribution.
Do you qualify
How this is calculated
A threshold-based surcharge
Several systems charge high earners an additional rate on retirement contributions once total income crosses a threshold. In Australia that threshold is $250,000 and the extra rate is 15%, doubling the usual 15% contributions tax.
taxed = min(contributions, income + contributions − threshold)Only the part above the line
The charge applies to the lesser of your contributions and the amount over the threshold, so someone $5,000 over pays on $5,000 rather than on the whole contribution. That is why the effective rate rises gradually.
It narrows the benefit rather than removing it
Contributions taxed at 30% still beat a 47% marginal rate by 17 points. The surcharge makes contributing less attractive at the margin; it rarely makes salary the better option.
Worked example: $245,000 of income with $30,000 of contributions
| Income | $245,000 |
|---|---|
| Contributions | $30,000 |
| Combined | $275,000 |
|---|---|
| Charged on | The amount over the threshold |
Whether a surcharge applies, at what threshold and on which income measure all differ by country. Pick a country above for the version that binds you.
What this assumes
- Contributions are within the annual cap.
- Combined income equals income plus contributions.
- No defined-benefit interest is involved.
- Full-year residency in the selected country.
Where this commonly goes wrong
- Threshold tests usually use a broader income measure than taxable income, adding fringe benefits and investment losses back in.
- One-off income events — a capital gain, a redundancy payment, a large bonus — can trigger a surcharge for a single year at an income you will never repeat.
- The assessment often arrives months after the tax return, separately, and is easy to mistake for an error.
Questions
What is a high-income contributions surcharge?
An additional tax on retirement contributions for people above an income threshold, reducing the tax advantage that a concessional contribution otherwise gives a high earner.
Does it apply to the whole contribution?
Usually only to the part that sits above the threshold, which is why someone just over it pays far less than the headline rate suggests.
Is contributing still worthwhile?
Generally yes, while the combined rate inside the fund stays below your marginal rate. A surcharge that lifts contributions tax from 15% to 30% still leaves a 17-point saving against a 47% marginal rate — it narrows the gap rather than closing it.
Related tools
Sources
General information only, based on published rules for the the current period. It does not take account of your objectives, financial situation or needs and is not financial product advice. BankSync does not hold an AFSL. Consider advice from a licensed financial adviser.
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