Division 293 Tax Calculator Australia (FY 2025-26)

Updated for FY 2025-26 · Published 3 March 2026

If you earn a high income in Australia, you may have received a notice from the ATO about "Division 293 tax" — and wondered what on earth it means. You're not alone. This is one of the least-understood areas of the Australian tax system, yet it can cost high-income earners thousands of dollars extra each year.

This guide explains what Division 293 tax is, how it's calculated, who it affects, and how to estimate your liability — all in plain English.

What Is Division 293 Tax?

Division 293 tax is an additional 15% tax on concessional (pre-tax) super contributions that applies to high-income earners. It sits on top of the standard 15% contributions tax that your super fund already pays.

In effect, if Division 293 applies to you, your concessional contributions are taxed at 30% total instead of 15%. The ATO's rationale is that high-income earners shouldn't get a larger tax concession on super than lower-income earners.

The name comes from Division 293 of the Income Tax Assessment Act 1997 — not the most catchy branding, but that's the ATO for you.

Who Does Division 293 Apply To?

Division 293 tax applies if your income plus low-tax super contributions exceeds $250,000 in FY 2025-26. This threshold has been in place since FY 2017-18 and has not changed.

The ATO calculates your "Division 293 income" by combining:

• Your taxable income
• Total net investment losses (added back in)
• Reportable fringe benefits total
• Total reportable employer super contributions
• Low-tax concessional super contributions (e.g. employer SGC, salary sacrifice)

If that combined figure exceeds $250,000, you'll receive a Division 293 assessment from the ATO after you lodge your tax return.

Common groups affected include senior professionals, executives, medical specialists, lawyers, and anyone receiving substantial salary sacrifice contributions or employer super contributions on top of a high salary.

How Is Division 293 Tax Calculated?

The extra 15% tax applies to the lower of:

1. Your low-tax concessional contributions for the year
2. The amount by which your Division 293 income exceeds $250,000

Note that the concessional contributions cap for FY 2025-26 is $30,000 (including employer SGC). Contributions above this cap are taxed differently and don't factor into Division 293 in the same way. See our Superannuation Calculator for more detail on the cap.

How to Estimate Your Division 293 Tax

While the ATO calculates the official assessment after you lodge, you can estimate your own liability using these steps:

Want to see your full tax picture including income tax, Medicare levy, and super? Use our Take-Home Pay Calculator for a complete breakdown.

How Do You Pay Division 293 Tax?

After you lodge your tax return, the ATO will issue a Division 293 assessment notice. You then have a choice:

• Pay it personally — out of your own savings, like any other tax bill. No impact on your super balance.
• Release it from your super fund — you can elect to have the amount paid directly from your superannuation fund. This preserves your cash but reduces your super balance.

You'll typically have 60 days from the date of the assessment to elect to release the amount from super, otherwise you'll need to pay it personally. The ATO will notify your super fund directly once an election is made.

Most financial advisers suggest carefully considering the long-term compounding effect before choosing to release from super. A $4,000 withdrawal today could cost significantly more in retirement due to lost compound growth.

Can You Reduce or Avoid Division 293 Tax?

There are a few legitimate strategies, but options are limited once you're well above the $250,000 threshold:

• Reduce concessional contributions — If you're salary sacrificing into super, consider whether the net benefit is still worthwhile given the 30% total tax rate. Use our Salary Sacrifice Calculator to model the numbers.
• Shift to non-concessional contributions — After-tax contributions aren't subject to Division 293. However, you lose the upfront tax deduction. See our Superannuation Calculator for contribution strategy insights.
• Timing of income — In some cases, deferring income or bonuses across financial years can keep you under the threshold. Speak with a tax adviser about this.
• Spouse contributions — Shifting some super strategy to a lower-income spouse can make sense as part of broader planning.

Note: salary sacrifice does not reduce your Division 293 income — the sacrificed amount is added back in when calculating whether you exceed $250,000. This is a common misconception.

Division 293 and Defined Benefit Funds

If you're a member of a defined benefit super fund (common in the public sector), the calculation is more complex. The ATO uses a "notional taxed contributions" amount set by the fund's actuary rather than actual contributions. This can sometimes result in a higher Division 293 assessment than expected.

Members of defined benefit funds should request an annual statement from their fund showing their notional taxed contributions and plan accordingly. If this applies to you, it's worth speaking with a financial adviser familiar with public sector super funds.

Summary

Division 293 tax is a fair-but-complex part of Australia's super system designed to ensure high-income earners don't receive an outsized tax concession on their retirement savings. If you're close to the $250,000 combined income mark, it's worth running the numbers each year so you're not caught off guard by the assessment.

For a full picture of your tax position — including income tax, Medicare levy, and super contributions — try our Take-Home Pay Calculator or explore the Income Tax guide for FY 2025-26 rates.

This article is for general informational purposes only and does not constitute financial or tax advice. For personal advice, consult a registered tax agent or financial adviser.