What is Division 293 tax?
Division 293 tax is a tax introduced by the Australian Government to increase tax on superannuation fund contributions from 15% to 30% for individuals whose total earning for Division 293 purposes exceeds $300,000 per financial year. The Legislation was passed late February 2014 but has been applied retrospectively from 1 July 2012 onwards.
Recent changes
From 1 July 2017, total earning for Division 293 tax purposes has reduced from $300,000 to $250,000, so if your earning for Division 293 purposes is more than $250,000 in the 2018 tax year, you will be assessed for division 293 tax for 2018 tax year.
How Division 293 Tax can be paid
There are two payment options to pay Division 293 Tax. They are:
Paid by the individual personally from their own funds
The member's superannuation fund releases funds to pay for the tax liability. A release authority form will be posted to you. Please read the letter and form carefully as these are time sensitive and will need to be submitted by a certain date as indicated on the letter.
If you are eligible to pay Division 293 tax a letter will be sent to you with the amount owing and detailed payment methods and instructions.
Please contact us on 02 9299 7044 if you have any further questions regarding Division 293 Tax.