Agilis Chartered Accountants — Brisbane
Received a Division 293 notice from the ATO? Our Brisbane tax team explains what it means, checks it's correct and helps you plan ahead so it doesn't catch you off guard again.
Division 293 tax has been quietly catching more people every year. The $250,000 threshold has not moved since 2017, but wages, bonuses and superannuation guarantee contributions have. If your combined income and concessional super contributions go over $250,000 in a financial year, the ATO imposes an additional 15% tax on the excess amount over the threshold or the taxable super contributions, whichever is less.
It's common in Brisbane for this to catch people by surprise: a bonus year, the sale of an investment property, a promotion, or simply super guarantee rates climbing. If you've opened a letter from the ATO with "Division 293" in the title, you're not alone, and it's not something to leave sitting in a drawer.
We check the notice against your actual income and contributions, confirm the figures are right, and explain in plain terms what you owe and why.
Paying from your own funds protects your super balance but affects cash flow now. Releasing the amount from super avoids the upfront cost but reduces your retirement savings. We walk through both so you can make the call with full information.
Once the current notice is sorted, we look at your income and contribution pattern for the year ahead, including salary sacrifice timing, concessional contribution caps and, where relevant, super and investment structuring, so you understand your position before the next notice arrives rather than after.
Division 293 rarely sits on its own. We look at it alongside your income tax planning, any self-managed super fund, and your broader financial position, so the advice fits your whole picture, not just this one notice.
This service is built for Brisbane based:
We're a Brisbane based, client-first accounting practice. We don't believe in generic advice or jargon-heavy letters. When you work with us on a Division 293 notice, you'll get a straightforward explanation of what it means, honest reporting on your options and a clear process from first conversation to lodged election, if that's the path you choose.
Division 293 tax is an extra 15% tax the ATO charges on some superannuation contributions for people whose combined income and concessional super contributions exceed $250,000 in a financial year. It applies on top of the standard 15% contributions tax already paid inside super, and it's what triggers the Division 293 notice landing in your myGov inbox.
Anyone whose income, including reportable fringe benefits, plus their concessional super contributions, totals more than $250,000 in a financial year. In Brisbane, that most often catches business owners, executives and professionals, particularly in a year with a bonus, a promotion or a one-off capital gain.
The Division 293 threshold is $250,000 in combined income and concessional super contributions for a financial year. It has been frozen at this level since 1 July 2017, which is a big part of why more people are being caught by it each year as wages and super guarantee rates rise.
Only in years your combined income and concessional super contributions go over the $250,000 threshold. Many people move in and out of Division 293 depending on bonuses, capital gains or other one-off income, so it's worth checking your position annually rather than assuming last year's outcome will repeat.
Check the figures against your income tax return and super contribution statements, then decide whether to pay from personal funds or elect to release the amount from your super fund. Our Brisbane team can confirm the notice is correct and walk you through both payment options before your due date.
Both are valid options, and the right one depends on your cash flow and retirement timeline. Paying from personal funds protects your super balance but affects cash flow now, while electing to release the amount from super avoids the upfront cost but reduces your retirement savings, and we'll talk through both against your situation rather than giving a one-size-fits-all answer.
You can't avoid Division 293 tax once you're genuinely over the threshold, but you can plan around it. That includes monitoring income and contributions across the financial year, timing large concessional or carry-forward contributions carefully, and considering non-concessional contributions, which aren't counted for Division 293 purposes.
Division 293 tax is 15% of whichever is lower: your total concessional super contributions for the year, or the amount by which your income and contributions exceed the $250,000 threshold. For a full worked example, see our article, Division 293 Tax Explained.
Yes, we work with high income earners across Australia, though this page is built for our Brisbane clients. Get in touch and we'll confirm we're the right fit.
Bring it to a conversation with our team. We'll check it, explain it and help you plan for next year.
Book a Division 293 Consultation