Division 293 Tax is an additional 15% tax on superannuation contributions for individuals whose combined income and contributions are greater than the $250,000 threshold.
Division 293 income is the sum of the following amounts:
– Taxable Income
– Total Reportable Fringe Benefits
– Net Financial Investment Loss
– Net Rental Property Loss
– Net amount on which Family Trust Distribution Tax has been paid
– Super Lump Sum taxed elements with a zero tax rate
– Assessable First Home Super Saver released amount
This tax is levied to the individual who may then make an election to release the amount from their superannuation fund balance.