Many people disregard the extra 15 per cent tax Labor wants to impose on superannuation contributions for those who earn more than $200,000 a year (from $250,000). That’s because they don’t think it applies to them because their salary is nowhere near this amount. But it’s not just about salary – it can be much more.

Labor’s plan is to reduce the income threshold where the additional contributions tax (Division 293 tax) applies to $200,000. Division 293 tax is an additional 15 per cent tax on taxable super contributions for people whose combined income and contributions currently exceed $250,000 a year.