Overview
Division 293 tax reduces the tax concession on super contributions for individuals with income greater than the Division 293 threshold.
Division 293 threshold
An individual's income is added to certain super contributions and compared to the Division 293 threshold. Division 293 tax is payable on the excess over the threshold, or on the super contributions, whichever is less. The rate of Division 293 tax is 15%.
|
Income year |
Threshold |
|---|---|
|
2017–18 onwards |
$250,000 |
|
2012–13 to 2016–17 |
$300,000 |
For more information on the changes, refer to the ATO Document.
How to record in Simple Fund 360
If the member is paying the tax from the fund, post this additional tax (surcharge) to account 48100 - Division 293 tax.
Division 293 tax can be recorded in two different ways - manually through the Transaction List or sent through the SuperStream gateway service via the BGLSF360 ESA.
SuperStream
From 1 October 2021, Div 293 Due & Payable and Div 293 Deferred Debt can be processed via SuperStream. This is supported in Simple Fund 360, for more information, click here.
Transaction List
| From the Main Toolbar, go to Accounting. |
|
| Select Transaction list |
|
Select New Transaction | Bank Statement
| DR | 48100/MEMBERCODE (the member who is subject to the tax). |
| CR | 60400/BANKCODE (select the bank account) |
Select Post.
Which member amounts is Division 293 Contributions Tax paid from?
Simple Fund 360 will treat Division 293 Contributions Tax in two ways depending on which criteria the member has met.
Where Simple Fund 360 sources release authority payments from:
|
Member in Pension Phase or Member more than 65 years of age |
Member in Accumulation Phase or Member receiving a TRIS |
|
|
Preservation Amounts |
Unrestricted non-preserved*
|
Preserved |
|
Tax Free Component / Taxable Component |
As per the fund's Tax Free Percentage | 100% Taxable |
*If unrestricted non-preserved amounts are exhausted, release authority payments will be sourced as per Taxation treatment of release authorities