Division 293 Tax Calculator 2026-27
Division 293 tax is an extra 15% on concessional super contributions for people whose income plus contributions exceed $250 000. It is charged on the lesser of two amounts: your concessional contributions, or the part of income plus contributions above $250 000. The ATO's example is someone with $240 000 of income for Division 293 purposes and $15 000 of contributions: $255 000 in total, $5 000 over the threshold, so $750 of tax. Income here means taxable income plus reportable fringe benefits and net investment losses, but not the salary sacrificed to super, which counts as a contribution instead. With the $32 500 concessional cap in 2026-27, anyone earning more than $217 500 who fills the cap pays some. Enter your figures below.
Division 293 tax estimate
Division 293 tax
$2 625
Your full case: salary sacrifice super calculator.
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What counts as income for Division 293
The ATO uses the income measure of the Medicare levy surcharge, without reportable super contributions:
- taxable income (assessable income minus deductions);
- plus total reportable fringe benefits, such as packaged benefits or an exempt electric car;
- plus net financial investment losses and net rental property losses;
- plus amounts on which family trust distribution tax was paid;
- minus super lump sum taxed elements with a zero tax rate and assessable first home super saver amounts released.
Because salary sacrifice lowers taxable income and moves the same amount into contributions, it does not change whether you cross the threshold: income plus contributions stays the same.
Filling the $32 500 cap at high salaries
| Salary | Guarantee | Salary sacrifice to the cap | Income + contributions | Division 293 tax |
|---|---|---|---|---|
| $220 000 | $26 400 | $6 100 | $246 400 | $0 |
| $240 000 | $28 800 | $3 700 | $268 800 | $2 820 |
| $260 000 | $31 200 | $1 300 | $291 200 | $4 875 |
| $300 000 | $31 234 | $1 266 | $331 234 | $4 875 |
| $400 000 | $31 234 | $1 266 | $431 234 | $4 875 |
Once income alone passes $250 000, all concessional contributions are taxed: 15% of $32 500 is $4 875. Above the maximum contribution base the guarantee stops at about $31 234, which on its own almost fills the cap.
One-off years
Division 293 can apply for a single year: a redundancy or employment termination payment, back pay, a capital gain on shares or property, or a bonus. Someone normally on $180 000 who sells an investment property can cross the line that year only. If you plan a large carry-forward contribution, note that all contributions within your higher cap count for Division 293.
Notices, payment and defined benefit funds
The ATO assesses Division 293 after it has both your tax return and your fund's contribution reports, then sends a notice to your myGov inbox or your agent. Pay by the due date to avoid interest, from your own money or by electing to release money from super. Members of defined benefit schemes are assessed in the same way, but the tax is deferred to a debt account and paid when a benefit is taken; interest is added each 30 June unless the deferred amount is paid voluntarily. If you disagree with an assessment, check the income and contribution amounts first, then lodge an objection.
To see Division 293 inside the full salary sacrifice result, use the salary sacrifice super calculator; for your cap including unused amounts, the concessional contributions cap page.
Sources
Frequently Asked Questions
What is the Division 293 threshold for 2026-27?
How is Division 293 tax calculated?
Can I pay Division 293 tax from my super?
Is salary sacrifice still worth it if I pay Division 293?
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