Division 293 thresholds 2025-26 Australia
Quick answer: Division 293 starts once your income plus low-tax concessional contributions moves above $250,000.00. From that point, some or all of your concessional contributions can face an extra 15% tax on top of the usual 15% contributions tax.
What pushes you over the threshold
- Taxable income is not the whole story. Salary sacrifice and employer super contributions also matter.
- The tax applies to the lesser of your concessional contributions or the amount above $250,000.00.
- If you are already well above the threshold, your concessional contributions can effectively be taxed at 30% instead of 15%.
2025-26 threshold checkpoints
| Income | Concessional contributions | Division 293 income | Extra tax |
|---|---|---|---|
| $220,000.00 | $26,400.00 | $246,400.00 | Nil |
| $235,000.00 | $28,200.00 | $263,200.00 | $1,980.00 |
| $250,000.00 | $30,000.00 | $280,000.00 | $4,500.00 |
| $280,000.00 | $30,000.00 | $310,000.00 | $4,500.00 |
What usually matters in the decision
- If you are just above the line, only part of your concessional contributions may face Division 293.
- If you are far above the line, salary sacrifice usually still saves tax, but not as much as the standard 15% story suggests.
- If you are planning extra super contributions, check the concessional cap and Division 293 together rather than separately.
Model the super outcome
Use the super calculator to combine projections, concessional contributions and Division 293 impact.
Review the full super caps guide
Open the broader reference page for concessional, non-concessional and carry-forward rules.
See the long-form scenario
Use the scenario page if you want the deeper explanation and worked examples.
Frequently asked questions
What is the Division 293 threshold for 2025-26?
Division 293 starts once Division 293 income plus low-tax concessional contributions exceeds $250,000.00.
Does salary sacrifice count towards Division 293?
Yes. Salary sacrifice contributions are concessional contributions and are counted in the Division 293 calculation.
Is salary sacrifice still worth it if Division 293 applies?
Usually yes. The tax on affected concessional contributions rises to 30%, which is still below the top personal tax rate plus Medicare levy.
What actually counts toward the $250,000 Division 293 threshold?
Two amounts are added together and compared against $250,000.00: your Division 293 income, plus your Division 293 super contributions (broadly, your concessional contributions less any excess). Division 293 income is not a separate "adjusted taxable income" figure — the ATO defines it as the same income test used for the Medicare levy surcharge, disregarding reportable super contributions. It adds together taxable income (assessable income minus allowable deductions), total reportable fringe benefits, net financial investment loss, net rental property loss, and any net amount on which family trust distribution tax has been paid — then subtracts super lump sum taxed elements with a zero tax rate and any assessable First Home Super Saver released amount.
Does the Division 293 threshold combine with concessional super contributions, or is it income only?
It combines both. The ATO adds your Division 293 income and your Division 293 super contributions together, and Division 293 tax applies only to the excess over $250,000.00 — or to your taxable contributions, whichever is smaller. Income alone crossing the threshold with no concessional contributions in the same year triggers no Division 293 tax.
Is the $250,000 Division 293 threshold indexed each year?
No. The ATO's published Division 293 threshold table lists a single figure per period rather than an annually indexed one, and $250,000 has applied to every income year from 2017-18 onwards with no change since. This differs from settings like the concessional contributions cap, which are indexed and move periodically with wage growth.
When did Division 293 tax start, and why was the threshold $300,000 before?
Division 293 tax has applied since the 2012-13 income year. The ATO's published threshold table shows it started at $300,000 for the 2012-13 to 2016-17 income years, then dropped to the current $250,000 from the 2017-18 income year onwards.
Tax Accuracy & Sources
Reviewed: March 2026 · Tax year: 2026-27
This page summarizes the 2025-26 Division 293 trigger and the basic high-income decision logic. It is a planning guide, not a personal tax assessment.
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