Division 293 Assessments

The ATO is now beginning to issue Division 293 assessments which relate to taxpayers who have been subject to the additional contributions tax of 15% on the non-excessive portion of their concessional contributions.  

This additional tax is assessed under Division 293 of the Income Tax Assessment Act 1997 and applies only to super members whose adjusted income (including the non-excessive portion of their concessional super contributions) exceeds $300,000.  Division 293 tax is imposed on that part of concessional contributions which cause the adjusted income to exceed $300,000.

Super members who have received Division 293 assessments can pay the assessed tax themselves or have their superannuation fund pay the tax for them (and debiting their super interest with the payment).  If the superannuation fund is to pay the tax – then the trustee must be provided with a “release authority” which is issued by the ATO.  The super member will receive a release authority with their notice of assessment for Division 293 tax.

If the taxpayer gives the release authority to the trustee, the trustee has 30 days in which to pay the specified amount to the ATO.  The ATO will then treat the assessment as having been paid.