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If you're a high income earner, you need to know about these rules.

Division 293 tax is an extra tax on super contributions, aimed at reducing the tax concession for individuals whose combined income and concessional contributions exceed $250,000 for Division 293 purposes.

This tax is applied at a rate of 15% on the amount that exceeds the threshold or on the taxable super contributions, whichever is lower.

The ATO will send you a Division 293 notice if you are liable to pay Division 293 tax. You can pay Division 293 tax liabilities either with your own money or by releasing money from super. To release money from super to pay the Division 293 tax, you must make the relevant election within 60 days from the date of your Division 293 assessment. When the ATO have received a valid election form, the ATO will send us a release authority to pay the amount specified in your election form.

To learn more about Division 293, refer to the ATO website.

What you need to know

Any advice on this website is provided by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life), and is general advice and does not take into account your objectives, financial situation or needs. Before acting on this advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs, as well as the relevant product disclosure statement and/or policy document, available from Resolution Life at resolutionlife.com.au or by calling 133 731, before making a decision on whether to acquire, or continue to hold, the product. 

The Target Market Determinations (TMDs) for our financial products (where applicable) can be found at Target Market Determinations (TMDs). The TMDs describe the key features and attributes of an applicable product that affect whether it is likely to be consistent with the objectives, financial situation and needs of consumers in the target market.

Resolution Life is part of the Resolution Life Group and can be contacted via contact us or by calling the phone number mentioned above.