What is a Div 293 Assessment?
This extra tax is known as ‘Division 293’ tax. Prior to the last Budget, the normal tax rate on concessional contributions paid into superannuation funds was 15%, and if your taxable income plus the concessional contribution, was greater than $300,000 the rate was 30% on the portion of the concessional contribution that took the combination above $300,000. Now the threshold has been reduced to $250,000.
The calculation is a bit convoluted, but rest assured, if you are close to the $250,000 threshold (but short of the $300,000 figure), your fund will be paying a lot more tax in this and future years.
If your income is around this $250,000 level or higher and you want to find out more, give Noel a call on 03 9585 7555 or email him firstname.lastname@example.org