We have many clients that receive a ATO payment request for Div 293 through their super, here is a short explanation as to why this happens.

What is Division 293

  • Division 293 tax is an additional tax that is charged to high income earners, effectively it adds 15% to their super contribution tax rate making theirs 30% instead of 15%.

Who will be liable for Division 293

  • If your combined income and super contributions were more than $250,000 for a financial year, you will be liable for Division 293 tax.

How the Division 293 tax is calculated

  • ATO will assess whether you are liable for Division 293 and how much after you have lodged your tax return
  • Division 293 is calculated as 15% of your taxable contributions for that financial year.
  • When you receive your Division 293 notice, it will have details on how ATO has calculated the 293 tax for you.

Ways to pay Division 293

There are two ways to pay Division 293:

  1. You pay from your own savings
  2. You pay from your super balance
  • If you choose to pay from you super fund, you MUST make a Division 293 election via you MyGov by the due date which will be specified in your Division 293 notice.

What you need to do

Check MyGov regularly to make sure you do not miss any ATO communications

If you do receive Division 293 notice, please review and pay it promptly as late interest will apply if you miss the due date

If you have any further queries regarding Division 293, please contact us for help

More information regarding Division 293 can be found on the ATO website


Adrian Chaudhary FCA CFP JP

General Advice warning: the information in this article is general in nature, it is not advice specific to your needs. If you want to act upon the information in this article then you should seek advice from a qualified professional. VJC accepts no liability to any party for acting from this information unless they have sought advice in a formal engagement with VJC for this purpos