Division 293 tax

Division 293 is an additional 15% tax that applies to concessional (pre-tax) super contributions when your combined income plus contributions exceed $250,000 in a financial year.

It effectively raises the tax on those contributions from 15% to 30%. The ATO assesses it automatically after you lodge your tax return — you can pay it from your own money or release the funds from super.

Even with Div 293 applying, salary sacrificing still usually beats taking the money as cash because the top marginal rate is 47% including Medicare.