Tax Alert: Division 293 Assessments

The ATO is issuing Division 293 assessments for liabilities arising in the 2018 income year, requiring additional tax to be paid by affected individuals.

Division 293 imposes an additional 15% tax on certain concessional superannuation contributions and applies to individuals with income and concessional superannuation contributions exceeding the relevant threshold. In the 2018 financial year, the applicable threshold dropped from $300,000 to $250,000 and the ATO therefore anticipates more than 90,000 assessments will be issued during just the first two months of 2019.

When the Division 293 tax is combined with the existing 15% contributions tax, affected individuals may end up paying 30% on:

  • superannuation contributions made on their behalf as a result of employer super guarantee obligations or effective salary packaging arrangements; or

  • personal deductible contributions.

If you receive a Division 293 assessment from the ATO, it is important that you make payment before the due date. There are alternative payment methods available, including the ability to release money from any existing super balance, however, you should ensure you act quickly to avoid incurring additional interest charges.

If you have questions or concerns about Division 293 assessments and whether you are likely to be affected, please do not hesitate to contact your team at OakWealth.

Featured Posts
Recent Posts
Archive

CONTACT US

Head Office: Suite G.01

313 Canterbury Road

Canterbury  VIC  3126

By appointment, we can also meet with you via virtual options like Skype or GoToMeeting, or in person at locations in the Melbourne CBD, Mount Waverley and Southbank. 

(03) 9882 8288 | info@oakwealth.com.au

MEMBERSHIPS

OakWealth is an FPA Professional Practice. Oak Wealth Solutions Pty Ltd is an Authorised Representative of GWM Adviser Services Ltd (AFSL 230692)

FOLLOW US

  • Facebook Social Icon
  • LinkedIn Social Icon
  • Instagram-v051916

THE BLOG

ARE YOU READY TO START?

Ready to start your journey to
wealth and abundance? 

Contact us to book your
complimentary consultation.

Copyright © 2018 Oak Wealth Solutions Pty Ltd.  All rights reserved.  Yihsing Koo, Oak Wealth Solutions Pty Ltd (ACN: 143 070 946) ATF Oak Wealth Solutions Unit Trust (ABN: 657 966 722 37) and Oak Wealth Planning Pty Ltd (ACN: 158 930 422) ATF Oak Wealth Planning Unit Trust (ABN: 97 916 959 977) are Authorised Representatives of GWM Adviser Services Ltd (ABN: 96 002 071 749), Australian Financial Services Licensee, 105 - 153 Miller Street, North Sydney NSW 2060.

Terms and Conditions | General Advice Warning | Privacy Policy