Division 293 tax is an extra 15% tax on concessional super contributions for people whose income plus concessional contributions exceeds $250,000 in an income year. If you have received a Division 293 assessment and want the fund to pay it, you need to lodge an election form with the ATO. The form is below, along with the notes on how the tax works and how the release actually happens.
Download the Division 293 election form
Download the Division 293 tax due and payable — election form (PDF)
Use this form to tell the ATO you want your super fund to release money to pay a Division 293 assessment. You can also make the election online through myGov if you have linked the ATO to your account.
How Division 293 works
| Rate | 15% — on top of the 15% contributions tax the fund already pays. |
| Threshold | $250,000 of combined income and concessional contributions. |
| What is taxed | The lesser of your concessional contributions and the amount by which you exceed the threshold — not your whole income. |
| Who assesses it | The ATO, from your tax return and the fund’s member contribution reporting. You do not calculate it yourself. |
| Who is liable | You personally. The fund can release money to pay it, but the debt is yours. |
The threshold has been $250,000 since the 2017–18 income year. For 2012–13 to 2016–17 it was $300,000. Unlike most super thresholds, it is not indexed.
The income test catches more people than expected
“Income” for Division 293 is not just salary. It is broadly your taxable income plus reportable fringe benefits, net investment losses, and some other add-backs, then your low-tax contributions are added on top. Two things catch people out:
- One-off events. A capital gain, an eligible termination payment or a large bonus can push you over the threshold in a single year even though your normal salary is well under it.
- Carry-forward catch-up contributions. Using several years of unused concessional cap in one year adds all of it to the Division 293 income test in that year.
Only the amount above $250,000 is hit, and only to the extent of your concessional contributions — so exceeding the threshold by $10,000 means Division 293 applies to $10,000, not to the whole contribution.
Paying it: yourself or from the fund
You have two options once the assessment arrives.
Pay it personally. Pay the ATO from your own money by the due date on the notice. Nothing needs to happen in the fund.
Release it from super. Lodge the election form (or elect online), nominating the fund and the amount. The ATO issues a release authority to the fund, the fund pays the ATO, and the member’s balance is reduced by that amount. For an SMSF, the trustees have to action the release authority within the period stated on it.
Either way the liability is yours. If the fund does not pay, the ATO pursues you, not the fund.
What the SMSF trustees have to do
- Action the release authority within the timeframe on the authority. Late action can attract penalties.
- Pay the amount directly to the ATO — not to the member.
- Record the payment against the correct member’s account, reducing their taxable component first in the usual order.
- Keep the release authority and the payment record on file for the audit.
- Do not release more than the authority states. If the fund cannot release the full amount — illiquid assets, or the member is not eligible — notify the ATO rather than paying part and ignoring the rest.
Frequently asked questions
Is Division 293 tax deductible?
No. It is a personal tax liability and is not deductible to you or to the fund.
Does paying it from super count as a withdrawal?
It reduces your member balance, but it is not a benefit payment and does not require you to meet a condition of release. It is a release authority payment.
What if I am in pension phase?
Release from a pension account is generally not available. You will usually need to pay personally, or release from an accumulation interest if you have one.
How long do I have to elect?
The notice states the due date. Elect before it — a late election can leave you with general interest charge on the unpaid assessment.
Can I split it across two funds?
Yes. The election form lets you nominate an amount from more than one fund, provided the total matches the assessment.
Will it happen again next year?
Only if you exceed the threshold again. If a one-off gain pushed you over, it is a one-year event.
We handle the release authority for our SMSF clients
If you are an SMSF client and receive a Division 293 assessment, send it to us. We will confirm whether releasing from the fund makes sense, prepare the election, and action the release authority and the accounting entries when it arrives.
Contact us about a Division 293 assessment
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This page is general information only. It is not tax or financial product advice and does not take your circumstances into account. Rates and thresholds are current at the date of publication. Superannuation Warehouse Australia Pty Ltd, ABN 62 141 409 449.