Division 293 Tax

What is Division 293 tax?

The normal rate at which pre-tax superannuation contributions in excess of $25,000 (Contributions) are taxed is 15% as prescribed by section 291.15 of the Income Tax Assessment Act 1997 (Cth) (ITAA).[1]  However, section 293.15 of the ITAA  includes an additional tax on Contributions (Division 293 Tax) that applies subject to certain criteria.[2]  This article discusses the Division 293 Tax, and to whom it applies.  Superannuation contributions equal to or below $25,000 are referred to as Low Tax Contributions. [Read more…]

Send this to a friend