Where an Individuals Adjusted Income is above the threshold ($300,000 for the 2013 FY to 2017 FY and $250,000 for the 2018 and later financial years), Division 293 tax is payable at a rate of 15% on the excess over the threshold, or on the super contributions, whichever is less.

The Adjusted Income is worked out as follows:

• Taxable Income; plus
• Reportable Fringe Benefits; plus
• Target Foreign Income; plus
• Net Investment Losses; plus
• Tax-free Government Pensions; plus
• Total Concessional Contributions (personal and employer).

This will generally bring the tax payable on the Concessional Contributions to 30% (being 15% paid by the Superannuation Fund and 15% paid in Division 293 tax).

Note that payment of the Division 293 tax can be made one of two (2) ways:

• Payment using personal funds; or
• Electing to release money from any of existing super balances by completing a Division 293 election form.