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:
Paid personally (using cash)
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.