# Division 293 tax calculator

Source: https://calculatax.com/super/division-293-tax-calculator/
Title: Division 293 Tax Calculator 2026-27 | Calculatax
Last updated: 2026-11-07

This division 293 tax calculator works out the extra 15% tax on concessional super contributions when your income plus those contributions is over $250,000 in 2026-27. It uses the [ATO Division 293 tax thresholds](https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/division-293-tax). With $265,000 of income and $32,500 of contributions, the tax is **$4,875**.

| Default example | Amount |
|---|---|
| Income for Division 293 purposes | $265,000 |
| Concessional contributions | $32,500 |
| Combined total | $297,500 |
| Excess over $250,000 | $47,500 |
| Amount taxed (lesser of excess and contributions) | $32,500 |
| Division 293 tax at 15% | $4,875 |
| Total tax rate on these contributions | 30.00% |

*2026-27 Division 293 threshold of $250,000 and rate of 15%. Source: ATO.*

Division 293 tax applies on top of the 15% contributions tax your fund already deducts, so contributions it catches in full are taxed at 30% in total. It's one of the rules that apply to [superannuation](https://calculatax.com/super/) once income is high. The $250,000 threshold hasn't changed since 2017-18.

## What counts towards the $250,000 test

The ATO adds two amounts together: your income for Division 293 purposes and your concessional contributions. If the total is more than $250,000, Division 293 tax applies.

### What's in income for Division 293 purposes

The [ATO's Division 293 rules for high-income earners](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/division-293-tax-on-concessional-contributions-by-high-income-earners) start with taxable income, then add:

- Reportable fringe benefits.
- Net financial investment losses and net rental property losses.
- Any amount on which family trust distribution tax was paid.

Super lump sums taxed at a zero rate and assessable first home super saver amounts are taken out. Reportable super contributions are left out at this step, because the contributions are counted separately.

### What's in the contributions

These are your concessional contributions for the year: employer contributions including super guarantee (SG), salary sacrifice and personal contributions you claim as a deduction. Amounts above the $32,500 concessional cap are excess contributions, and the ATO disregards them for Division 293.

If carried-forward amounts raise your cap, every contribution inside the higher cap counts.

Salary sacrifice doesn't lower the combined total, because the contributions are added back. A one-off spike counts too, so a capital gain or back pay can push a single year over $250,000.

| $200,000 of income and $32,500 of contributions | Usual year | With the gain |
|---|---|---|
| Taxable capital gain | $0 | $40,000 |
| Combined total | $232,500 | $272,500 |
| Excess over $250,000 | $0 | $22,500 |
| Division 293 tax | $0 | $3,375 |

## Worked example: $265,000 of income

The tax is 15% of the lesser of two amounts: the excess over $250,000, and your contributions. At $265,000 of income with the full $32,500 cap, the excess is bigger, so all the contributions are caught.

The lesser-of rule matters when the combined total is only just over $250,000. The table shows the same $32,500 of contributions at other income levels.

| Income for Division 293 purposes | Combined with $32,500 contributions | Excess over $250,000 | Division 293 tax |
|---|---|---|---|
| $217,500 | $250,000 | $0 | $0 |
| $230,000 | $262,500 | $12,500 | $1,875 |
| $240,000 | $272,500 | $22,500 | $3,375 |
| $250,000 | $282,500 | $32,500 | $4,875 |
| $300,000 | $332,500 | $82,500 | $4,875 |

*2026-27, concessional contributions of $32,500. Source: ATO threshold and rate; Calculatax calculation.*

From $250,000 of income upwards, every dollar of contributions is taxed and the result stops rising.

## Paying with a release authority

The ATO sends you a Division 293 notice once it has both your tax return and your fund's contribution information. You can pay from your own money or release the amount from your super.

1. **Make the election.** You have up to 60 days from the date of the assessment. It can't be withdrawn once made.
2. **The ATO tells your fund.** It sends your fund a release authority for the amount you've chosen.
3. **Your fund pays the ATO.** The money goes towards your Division 293 tax.

> **The election doesn't move your due date.** The tax is still due on the date in your notice, and paying by then avoids interest.

Paying from super keeps cash in your pocket but lowers your retirement balance. Paying from savings keeps the full balance invested.

## Defined benefit members

If you're in a defined benefit fund, you're still assessed, but the ATO defers the tax on those contributions until a benefit is paid. It records the amount in a debt account.

### When a deferred debt is due, and the interest on it

The debt is due 21 days after the day your benefit is paid. Any deferred debt not paid by 30 June each year attracts end-of-year interest at the average 10-year Treasury bond rate, which was 4.6148% for 2025-26, the latest the ATO lists.

You can choose to pay early to avoid that interest. Your notice shows any amounts that are due now as well as the deferred amounts.

## Is salary sacrifice still worth it above $250,000?

Usually yes in pure tax terms, but the gap narrows. Above $190,000, income is taxed at 45% plus the 2% [Medicare levy](https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents), while contributions caught by Division 293 are taxed at 30% in total.

| Each $1,000 sacrificed above $190,000 | Without Division 293 | With Division 293 |
|---|---|---|
| Income tax and Medicare levy saved | $470 | $470 |
| Tax on the contribution | $150 | $300 |
| Net gain | $320 | $170 |

The cap limits how much you can sacrifice. SG on $265,000 of qualifying earnings is $31,800, which leaves only $700 under the $32,500 cap. The [salary sacrifice super](https://calculatax.com/super/salary-sacrifice-super-calculator/) calculator checks that room for your salary.

Personal contributions you claim as a deduction work the same way for this test. Money in super is locked away until you meet a condition of release, which also weighs on the decision.

## What the calculator does not cover

The calculator assumes you enter income for Division 293 purposes correctly. It doesn't work that figure out from your tax return.

### What's left out

- Excess concessional contributions above $32,500, which have their own tax.
- Defined benefit deferred debts and interest.
- The Medicare levy surcharge and HELP repayments, which use their own income tests.

The ATO's notice of assessment is the final figure.

The [current super rate](https://calculatax.com/super/super-guarantee-rate/) shows how SG is worked out, and the [super calculator](https://calculatax.com/super/super-calculator/) shows how contributions grow.

## Division 293 questions: the income test, the notice and paying from super

### What is Division 293 tax?

It's an extra 15% tax on concessional super contributions for people whose income plus those contributions is over $250,000. When it catches all your contributions, total tax on them is 30%. The test looks at your own income and contributions, so your spouse's income isn't part of it.

### How is Division 293 income calculated?

Start with taxable income, add reportable fringe benefits and net investment losses, and leave out reportable super contributions. Then add your concessional contributions. In the ATO's example, $240,000 of income and $15,000 of contributions total $255,000, so the tax is 15% of the $5,000 excess: $750.

### Is it better to pay Division 293 tax from super?

It depends on your cash flow and how long the money would stay invested. Paying from super keeps cash available now but lowers your balance, while paying from savings keeps the full balance invested. You have up to 60 days from the assessment to choose super, and the due date stays the same.

### What is a Division 293 notice of assessment?

It's the ATO notice showing how much Division 293 tax you owe for an income year. It's issued once the ATO has your tax return and your fund's contribution information. Check the income and contribution amounts carefully, because a mistake in either can make the tax wrong.

### How can I avoid Division 293 tax?

It's hard to avoid if your income stays high, because salary sacrifice doesn't lower the test and lower contributions also mean less super. A one-off spike, such as a capital gain, may trigger it for only one year. A registered tax agent can review your situation.

*Estimates only, based on published rates for 2026-27. General information, not tax or financial advice.*

## Sources

- [ATO: Division 293 tax](https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/division-293-tax)
- [ATO: Contributions caps](https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/contributions-caps)
- [ATO: Tax rates, Australian residents](https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents)
- [ATO: Division 293 tax on concessional contributions by high-income earners](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/division-293-tax-on-concessional-contributions-by-high-income-earners)