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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.

Tom Richardson
Tom RichardsonJournalist

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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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Tom Richardson writes and comments on markets including equities, debt, crypto, software, banking, payments, and regulation. He worked in asset management at Bank of New York Mellon and is a member of the CFA Society of the UK as a holder of the Investment Management Certificate. Connect with Tom on Twitter. Email Tom at tom.richardson@afr.com

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