The ATO have recently announced changes to the threshold of Division 293 tax. From 1 July 2017 the threshold for which this tax kicks-in will be lowered to $250,000.
Division 293 tax was introduced from the 2012–13 year to reduce the tax concession on superannuation contributions for individuals with income greater than the Division 293 threshold.
From 1 July 2017 onwards the Division 293 threshold is $250,000, prior to this it was $300,000.
Division 293 tax is charged at 15% of an individual’s taxable contributions.
Please contact Ashley Brown if you want to discuss this change in more detail. 0402 025 046.