Division 293 can add 15% tax on some concessional super contributions when a person's Division 293 income plus super contributions exceeds A$250,000. It is not a switch that taxes all contributions at 30% the moment income crosses the threshold. The taxable contribution amount is the lesser of the year's eligible concessional contributions and the excess above A$250,000, under the ATO's calculation guide.
Sarah's partial-threshold example
Assume Sarah has A$240,000 of Division 293 income and A$20,000 of eligible concessional super contributions. Combined amount is A$260,000, exceeding the threshold by A$10,000. Taxable Division 293 contributions are min(A$20,000, A$10,000)=A$10,000, so the extra tax is A$1,500. The fund's standard 15% contribution tax on A$20,000 is A$3,000, giving A$4,500 combined tax in this simplified case, not a blanket A$6,000 (30% of every contribution).
Full-threshold example and the 2026 cap
If Sarah instead has A$270,000 of Division 293 income and A$32,400 of eligible concessional contributions, the full A$32,400 can be subject to the extra 15%, or A$4,860. The general 2026–27 concessional cap is A$32,500, but a 12% employer contribution on A$270,000 salary is A$32,400, not A$32,500. Employer SG may also be subject to a maximum contributions base; real payroll and salary-sacrifice amounts must be checked before using either figure.
What it means for a decision
The ATO assesses Division 293 after receiving tax-return and fund data. The person can pay from other funds or elect a release from super subject to the ATO process. At high income, a 30% total tax on some concessional contributions can still be below a person's income-tax marginal rate, but do not add the 2% Medicare levy twice: the top ordinary rate is 45% plus 2% levy, making 47% where the levy applies. Concessional cap room, carry-forward amounts and other taxes matter.
