Rates verified: 4 September 2026 · Sources: ATO
Australia · $250,000 threshold
Work out the extra 15% tax on concessional super contributions once your income and contributions cross $250,000.
Division 293 estimate
Tax = 15% of the lesser of your low-tax contributions, or the amount by which combined income and contributions exceed $250,000. This is in addition to the 15% contributions tax your super fund already pays.
Division 293 tax equals 15% of the lesser of two amounts: your low-tax (concessional) super contributions for the year, or the amount by which your combined income and contributions exceed $250,000. Worked example: income of $240,000 plus concessional contributions of $15,000 gives a combined figure of $255,000 — $5,000 over the threshold. Since $5,000 is less than the $15,000 in contributions, tax applies to the $5,000: 15% of $5,000 is $750. If instead your income alone were $260,000 with the same $15,000 in contributions, the excess over $250,000 would be $25,000, which is more than your $15,000 in contributions — so the full $15,000 is taxed, giving $2,250.
Concessional super contributions are normally taxed at a flat 15% in your fund, which is a large concession if your marginal tax rate is 45%. Division 293 claws back some of that concession for higher earners by adding another 15% on the affected contributions, bringing the effective rate to 30% — still well below the top marginal rate of 45% plus the 2% Medicare levy, but no longer the full 30-percentage-point gap.
"Income for surcharge purposes" is broadly your taxable income, reportable fringe benefits, and net investment losses (including rental losses) — a similar concept to the income test used for the Medicare levy surcharge, though not identical. Low-tax contributions are your employer Super Guarantee contributions, salary-sacrificed amounts, and any personal contributions you've claimed a tax deduction for. Non-concessional (after-tax) contributions you haven't claimed a deduction for don't count.
The ATO calculates and issues a Division 293 assessment after you lodge your tax return — you don't self-assess it on the return itself. Once assessed, you can pay it personally or elect to release the amount from your super fund via an ATO-issued release authority, which many higher earners choose since the liability relates to contributions sitting in super rather than cash in hand.
These are two separate issues that can both apply in the same year. Exceeding the concessional contributions cap (generally $30,000 for most people in 2026-27) means the excess amount is added to your taxable income and taxed at your marginal rate, plus an interest charge, regardless of your total income. Division 293 is a different, additional tax that applies to contributions within your cap once your combined income and contributions cross $250,000. It's entirely possible to trigger Division 293 without exceeding your cap, or vice versa.
Some people assume Division 293 means their super contributions are suddenly taxed at their full marginal rate. That's not right — the affected contributions still only reach 30% total (15% standard contributions tax plus the extra 15%), which remains a meaningful concession compared to a 45% top marginal rate plus the 2% Medicare levy on the same dollars paid as ordinary salary. Division 293 narrows the concession for high earners, it doesn't remove it.
Someone with $245,000 of income and $20,000 of concessional contributions has a combined figure of $265,000, which is $15,000 over the $250,000 threshold. Since $15,000 is less than their $20,000 in contributions, only the $15,000 excess is taxed: 15% of $15,000 is $2,250. If that same person instead had only $8,000 in contributions, the combined figure drops to $253,000, so the excess over $250,000 is only $3,000 — and since $3,000 is now smaller than the $8,000 in contributions, only that $3,000 excess is taxed: 15% of $3,000 is $450. Lowering your contributions doesn't just reduce the contribution figure on its own, it also reduces the combined total and therefore the excess amount that Division 293 actually bites on.
If you're weighing up extra concessional contributions against the Division 293 threshold, also check the Super Guarantee Calculator for your compulsory contributions and the Super Balance Projection Calculator for how extra contributions compound toward retirement.