Why you could be caught by the ‘wealth tax’ this year
Fast-rising wages and asset prices will leave more Australians facing Division 293 tax on their income and deciding whether to pay it from their super.
Rising wages, growing superannuation contributions and soaring asset prices are set to push the income plus concessional contributions of more Australians above $250,000 in fiscal 2024, meaning many will pay an additional tax for the first time.
Division 293 tax applies to concessional super contributions made over a tax year when an individual earns more than $250,000 in total assessable income plus concessional contributions. It’s an additional 15 per cent levy on concessional contributions over the $250,000 threshold to take total tax on superannuation contributions to 30 per cent.
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