Hi
If income exceeds 250,000 Div293 applie and additional tax has to be paid on super. Either requiring to pay from savings or make an election and have taken out of super balance which basically results in adddtional super paid then being paid out as tax.
Is an employer once having reached the 27.5k concessional limits - are they able to pay what would be additional Super Guarantee instead direct to me as income?
Thanks
Hi @cummish,
The employer can use the maximum contribution base to pay an employee's SG. However, they can pay more if they choose to. In relation to tax payable for Div293, your income and up to the cap concessional contributions are added together to determine the amount of DIV293 payable.
So they can pay over and above the maximum contribution base in SG. Whether they will pay amounts above this to you as income, when they're not obligated to, would be a discussion you'd need to have with them.
Hi @cummish,
The employer can use the maximum contribution base to pay an employee's SG. However, they can pay more if they choose to. In relation to tax payable for Div293, your income and up to the cap concessional contributions are added together to determine the amount of DIV293 payable.
So they can pay over and above the maximum contribution base in SG. Whether they will pay amounts above this to you as income, when they're not obligated to, would be a discussion you'd need to have with them.
There is an upper limit on SG, but that will not help you with Div 293 tax.
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