Skip to main content

Div293

Div293 Tax & How It Affects You

Written by Cameron Drury

Division 293 Tax is an additional 15% tax on concessional (before-tax) super contributions for individuals whose Div293 Income + Concessional Super Contributions exceed $250,000 in a financial year.

This tax is designed to reduce the tax advantage high-income earners receive on their super contributions.

Canwi automatically calculates Div293 Tax Payable based on your income and concessional super contributions. We use the following process:

How we calculate Div 293 Tax

1. We calculate the Div293 Super Contribution

  • This is the lower of:

    • Your total concessional super contributions OR

    • The concessional super contributions cap for that year

2. We determine the Div293 Income

  • Div293 Income includes:

    • Taxable income

    • Reportable employer super contributions

    • Net investment losses

    • Fringe benefits

    • Other income components that count towards the threshold

3. We calculate the amount above the threshold

  • The Div293 threshold is $250,000

  • We check how much your Div293 Income + Super Contributions exceed this threshold.

4. We determine the taxable super contributions

  • The taxable amount is the lower of:

    • The excess amount over $250,000, OR

    • The concessional super contributions

5. We apply a 15% tax rate

  • The Division 293 tax rate is 15%, applied to the taxable super contributions.

How Div293 Tax Payments are made

In reality, Div293 Tax can be paid in two ways:

  1. Paid personally (using cash)

  2. Released from your super fund (you can request your fund to pay it for you)

How Canwi Processes Div293 Tax

👉 Canwi currently assumes Div293 Tax is paid from your primary cash account.

That means, in your financial plan, Canwi deducts Div293 Tax directly from your cash flow / primary cash account.


❌ We do not currently support paying Div293 Tax through superannuation.

Example Calculation

Let’s say your financial details are:

  • Taxable Income: $240,000

  • Concessional Super Contributions: $20,000

  • Div293 Threshold: $250,000

Step 1: Calculate Combined Amount

Div293 Income + Concessional Super Contributions = 240,000 + 20,000 = 260,000

Step 2: Amount Above $250k Threshold

260,000−250,000=10,000

Step 3: Taxable Super Contributions

Since $10,000 is less than the total concessional super contribution of $20,000, the taxable amount is $10,000.

Step 4: Apply the 15% Tax Rate

$10,000 × 15% = $1,500

✅ Div293 Tax Payable: $1,500
🚀 In Canwi, this will be deducted from your primary cash account.

Did this answer your question?