Division 293 tax calculator
Whether the extra 15% on super contributions applies to you, and on how much of them — which is rarely the full amount.
Covers 2026–27 financial year · rates as at 2026-07-01
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 tax applies to the lesser of your contributions and the amount over $250,000, so $245,000 plus $30,000 of contributions is charged on $25,000, not $30,000.
Do you qualify
How this is calculated
Combined income, then the lesser of two amounts
Taxable income and concessional contributions are added together. If the total exceeds $250,000, the extra 15% applies to the lesser of the contributions and the amount over the threshold.
taxed = min(contributions, income + contributions − 250,000)Why the benefit halves rather than disappears
Contributions still beat a 47% marginal rate: 15% plus 15% is 30%, so the saving falls from 32 points to 17. Division 293 makes sacrificing less attractive, not pointless.
Worked example: $245,000 income with $30,000 of contributions
| Taxable income | $245,000 |
|---|---|
| Contributions | $30,000 |
| Threshold | $250,000 |
| Combined | $275,000 |
|---|---|
| Taxed at the extra 15% | $25,000 |
| Division 293 tax | $3,750 |
The effective tax on those contributions rises from 15% to about 27.5% — still well below the 47% marginal rate on the same money taken as salary.
What this assumes
- Combined income equals taxable income plus contributions.
- Contributions are within the concessional cap.
- No defined-benefit interest is involved.
- Full-year Australian tax resident.
Where this commonly goes wrong
- The income test is broader than taxable income: reportable fringe benefits, net investment losses and net foreign employment income are added in too.
- A one-off event — a capital gain, a redundancy payment, a bonus — can push you over $250,000 for a single year and trigger the charge unexpectedly.
- The assessment arrives separately from your notice of assessment, often months later, and can be paid from super or from your own pocket.
Questions
What is Division 293 tax?
An extra 15% charged on concessional super contributions for people whose income plus contributions exceeds $250,000. It brings the tax on those contributions to 30%, still below the top marginal rate.
Is it charged on all my contributions?
No — on the lesser of your contributions and the amount over the threshold. At $245,000 of income with $30,000 of contributions you are $25,000 over, so $25,000 is taxed rather than the full $30,000.
Should I stop salary sacrificing if it applies?
Usually not. At a 47% marginal rate, contributions taxed at 30% still save 17 points. The charge halves the benefit rather than removing it, so the arithmetic still favours contributing up to the cap.
How do I pay it?
The ATO issues a separate assessment. You can pay it yourself or release the amount from your super fund using a release authority, which keeps the cash in your pocket at the cost of a smaller balance.
What counts toward the $250,000?
Taxable income plus reportable fringe benefits, net investment losses, net foreign employment income and your concessional contributions. It is a wider measure than the figure on your notice of assessment.
Can a one-off event trigger it?
Yes, and it commonly does. A capital gain, an employment termination payment or a large bonus can lift you over the threshold for one year, and the charge applies for that year regardless of your usual income.
Related tools
Sources
General information only, based on published rules for the 2026–27 financial year. 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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