Superannuation – Self Managed Funds
Are you? – A high-income individual?
At a glance: – Taxpayers may need to pay Division 293 tax if their adjusted income (as defined) and low-tax contributions are greater than $250,000.
You should: – Check whether you are obligated to pay Division 293 tax.
– Contact us if you require any clarification or advice.
Division 293 tax, which is paid by high income individuals making concessional contributions into their superannuation funds, is charged at 15% of an individual’s taxable concessional contributions above $250,000 from 1 July 2017.
Income for surcharge purposes include the following items:
- taxable income (including the net amount on which family trust distribution tax has been paid);
- reportable fringe benefits (as reported on your payment summary);
- total net investment losses (includes both net financial investment losses and net rental property losses); and
- reportable super contributions.
Contributions for Division 293 tax purposes include the following items:
- employer contributed amounts;
- other family and friend contributions;
- assessable foreign fund amounts; and
- assessable amounts transferred from reserves.
- personal contributions for which a deduction has been claimed
- defined benefit contributions (funded and unfunded).
Contributions into a constitutionally protected superannuation fund may be exempted from Division 293 tax.
For more information, click here.
Remember: – Reportable super contributions are disregarded from the surcharge calculation.
This article was published on 31/08/2018 and is current as at that date