Division 293 tax uses contribution information reported on an individual’s member contributions statement (MCS) to determine the total super contributions. The contributions that are counted for Division 293 tax purposes generally include:
other family and friend contributions
assessable foreign fund amounts
assessable amounts transferred from reserves
personal contributions for which a deduction has been claimed
defined benefit contributions (funded and unfunded).
These contributions are concessionally taxed within the super fund. For this measure, they are known as low-tax contributed amounts.
The low-tax contributed amounts are not the same as low-tax contributions. In order to calculate which contributions are the low-tax contributions, the ATO disregards any excess concessional contributions because for the 2012–13 financial year contributions that are subject to excess contributions tax are taxed an extra 30% (excluding Medicare levy) on top of the 15% tax paid by the super fund.
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Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.
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