The Extra Super Tax Most High Earners Don’t Expect

Division 293 tax is an additional tax that can apply to superannuation contributions for higher-income earners in Australia. When income plus concessional super contributions exceed $250,000, an extra 15% tax may apply, increasing the effective tax on those contributions from 15% to 30%. This rule often raises an important question for many professionals and business owners: does superannuation still make sense once Division 293 tax applies?

In this video, I explain how Division 293 works in practical terms and why the tax does not necessarily remove the long-term advantages of contributing to super. The discussion focuses on how the rule fits within the broader Australian superannuation system and why the comparison that matters is often between the Division 293 rate and a person’s marginal tax rate.

Topics covered in this video:
• What Division 293 tax is and why it exists
• When the $250,000 income threshold applies
• How concessional super contributions are normally taxed
• How Division 293 changes the effective tax on contributions
• The difference between contribution tax and marginal income tax
• Why super can still remain tax-effective for higher-income earners
• Common misunderstandings about Division 293 tax
• Practical considerations when reviewing super contributions

The goal of this video is to provide a clear explanation of Division 293 tax so viewers can better understand how it fits into the broader structure of the Australian superannuation system and long-term retirement planning.

If you would like to learn more about the financial planning services I provide, you can find further information at:
https://www.jamesbeard.com.au

General information disclaimer
The information provided in this video is general in nature and does not constitute personal financial advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information, you should consider whether it is appropriate for your circumstances.
James Beard (No. 464406) and Saint Financial Planning Pty Ltd (No. 1274834) are Authorised Representatives of Synchron (ABN 33 007 207 650) AFSL 243313.

Видео The Extra Super Tax Most High Earners Don’t Expect канала James Beard