Superannuation – Self Managed Funds

Are you? – A high-income individual?

At a glance: – Taxpayers may need to pay Division 293 tax if their adjusted income (as defined) and low-tax contributions are greater than $250,000.

You should: – Check whether you are obligated to pay Division 293 tax.
– Contact us if you require any clarification or advice.

Division 293 tax, which is paid by high income individuals making concessional contributions into their superannuation funds, is charged at 15% of an individual’s taxable concessional contributions above $250,000 from 1 July 2017.

Income for surcharge purposes include the following items:

• taxable income (including the net amount on which family trust distribution tax has been paid);
• reportable fringe benefits (as reported on your payment summary);
• total net investment losses (includes both net financial investment losses and net rental property losses); and
• reportable super contributions.

Contributions for Division 293 tax purposes include the following items:

• employer contributed amounts;
• other family and friend contributions;
• assessable foreign fund amounts; and
• assessable amounts transferred from reserves.
• personal contributions for which a deduction has been claimed
• defined benefit contributions (funded and unfunded).

Contributions into a constitutionally protected superannuation fund may be exempted from Division 293 tax.

For more information, click here.

Remember: – Reportable super contributions are disregarded from the surcharge calculation.

This article was published on 31/08/2018 and is current as at that date