The application of Division 293 Tax can be vastly tedious and confusing. However, it simply reduces the tax concession on superannuation contributions for individuals with income greater than $300,000 a year.

The tax is charged at 15% of an individual’s taxable concessional contributions above the $300,000 threshold (which are capped for 2012-13 at $25,000). For individuals who are members of a defined benefit fund, Division 293 tax may be calculated on notional contributions which are not capped.