“…but in this world nothing can be said to be certain, except death and taxes.”

Benjamin Franklin


It’s known as Division 293 of the Australian Tax Code, and from 1 July, 2017, it will impact anyone in Australia earning an income that is greater than A$250,000 per year.


This tax ruling was implemented in 2012 and it means that for individuals earning above $300,000, which is the current threshold, they will pay an additional 15% contributions tax on their concessional contributions into their super fund. This results in a tax rate of 30%.


The Coalition announced in the Budget that they would lower this threshold from $300,000 to $250,000, which will result in more Australians paying the additional 15% tax on their super contributions. Concessional contributions include your Superannuation Guarantee (SG) contributions, salary sacrifice contributions and tax-deductible contributions.


The income measurement for the purposes of the Division 293 tax includes your taxable income, any reportable fringe benefit amounts, net investment gains/losses, and net property losses.


This change is important to a wide range of people, not just those on higher salaries, as it can impact you in the year you sell investment assets such as property or shares, as well as those retiring. It’s important that you seek professional advice to ensure that you’re not putting yourself in a position of having to pay more tax than you otherwise could be.


To your financial success!


Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner with Australian Expatriate Group, division of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore. Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd – No: 200305462G | MAS License No: FA100035-3

Australian Expatriate Group is licensed by Global Financial Consultants in Singapore, with a team of Australian-trained, experienced and qualified professionals, allowing us to provide specialist advice to Australians living abroad.

To learn more about how we may be able to help you, please contact us:

✆        +65 8282 5702
✉        info@australianexpatriategroup.com
☜        http://australianexpatriategroup.com

To discuss how these changes affect you, click here to book a complimentary consultation: http://bit.ly/Book-Your-Consultation


General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.


*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.