Division 293 tax is the name given to a special extra tax (15%) paid on some or all of the concessional superannuation contributions made for high income earners. For this purpose, a high income earner is anyone who earns $250,000 or more and this amount includes their concessional contributions within the concessional contributions cap.
While the tax relates to superannuation contributions, it is actually levied on individuals rather than their superannuation funds. They are, however, allowed to access money from their superannuation to pay it.
An emerging challenge for those subject to this tax is : when can money be withdrawn from superannuation to pay it?