Reminder: Additional Tax on Concessional Superannuation Contributions

What is Division 293?

First introduced during the 2017/18 financial year, Division 293 is a taxation rule specifying a 15% tax rate on concessional superannuation contributions, generally, but not limited to, affecting high-income earners in Australia.

Division 293 reduces the tax concession on superannuation contributions for people with combined income and concessional contributions exceeding a threshold of $250,000 in a financial year. The aim of this rule is fairer treatment of tax on concessional contributions, meaning that people with higher incomes do not benefit disproportionately.

Will Division 293 affect you?

Firstly, it’s important to know what counts as income and contributions which is what the ATO will look at to determine if you are liable to pay Division 293 tax on your concessional superannuation contributions.

Income includes:

• Taxable earnings
• Total reportable fringe benefits amounts
• Net financial investment loss
• Net rental property loss
• Net amount (after family trust distribution tax has been paid)
• Super lump sum taxed elements (with a zero-tax rate)

Concessional (before-tax) contributions include:

• Employer superannuation guarantee contributions
• Salary-sacrifice contributions
• Personal contributions (if claimed as a tax deduction)

If your total combined income and concessional contributions exceed $250,000 in a financial year, you have reached the specified threshold for the application of Division 293.

Division 293 tax is calculated at 15% on whichever is the lesser of:

• The amount by which your total income plus concessional contributions exceeds the $250,000 threshold,  OR
• Your total concessional contributions in a financial year

The ATO will assess your eligibility to pay Division 293 tax when you lodge your tax return for the financial year. If you are liable to pay, a notice will be issued by the ATO. You may be able to pay with a release of money from your superannuation fund.

Next Steps

Contact YML Chartered Accountants about bringing forward deductions, deferring bonuses, utilising non-concessional (after-tax) contributions and using a family tax, among other ways to manage the timing of your income.

How can YML help?

Talk to our YML Chartered Accountants today to see how YML Group can assist you with your ATO Division 293 obligations. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Superannuation Guarantee Contribution is NOW 12%

Effective 1 July 2025, the final increment in a series of planned increases to the superannuation guarantee contribution (SGC), to be made by the Australian government, requires that employers contribute 12% of an employee’s ordinary time earnings to an employee’s superannuation fund.

The increase is 0.5% on last financial year’s SGC rate of 11.5% and is aimed at enhancing retirement savings of Australia’s workforce. This increase applies to all payments made on or after this date, regardless of when the work was performed.

Setting aside additional remuneration funds will be necessary from now to meet new payment obligations. Using Single Touch Payroll (STP) software connected to the ATO will ensure that your business generates timely and accurate reports for the ATO.

Navigating the SGC Rate Change for Employers

To navigate these changes and maintain compliance, YML Business Services offers their virtual bookkeeping services. We offer remote management of your business’s financial records using cloud-based accounting software. We provide a high qualified, specially trained bookkeeper – experts in Australian superannuation and taxation law – to partner with your business to help you manage both STP and your SGC obligations.

By leveraging YML’s bookkeeping services, you can reduce your administrative overhead, provide precisely calculated and punctually paid employer superannuation contributions, thereby allowing you to focus more on strategic growth initiatives for your business.

Updating your payroll system to remain compliant is essential to your ability to adhere to SGC reporting and payment requirements.

If you are late paying your SGC amount, then notify the ATO of any late SGC payments via the ATO’s process of lodging a Superannuation Guarantee Charge Statement within 28 days of the quarterly due date and pay the Superannuation Guarantee Charge which is made up of

• SG shortfall amounts, plus
• Interest on SG shortfall amounts, plus
• Administration fee per employee per quarter

Next Steps

The SGC change will affect businesses differently, dependent upon the nature of the workforce within an organisation, so reach out to YML Business Services TODAY.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with your SGC obligations, For more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

A simple insurance solution for busy business owners

You've got a business to run, and that comes with a long to-do list. Business insurance shouldn’t be another time-consuming chore. The right policy should give you peace of mind, not more headaches.

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Why do you need business insurance?

Every business deal with risks, whether it's client injuries on your office premises, mistakes in your professional advice, or cyber-attacks just to name a few. Business insurance is designed to protect your business from the financial aftermath, including cover for expenses and legal costs related to such unexpected events.

Without business insurance, one incident could set your business back months, or more. With it, you can help protect your finances, your reputation, and the trust you’ve worked hard to build with your clients.

Here are some of the most common types of business insurance:

• Public Liability insurance covers third-party injury or property damage claims that happen as a result of your business activities.
• Professional Indemnity insurance covers claims made against you for mistakes, errors, negligence or omissions in the services or advice you provide.
• Management Liability insurance helps protect business owners and directors from risks that come from running a business, like employment disputes, regulatory fines or harassment claims.
• Cyber Liability insurance covers costs related to cybercrime incidents such as data breaches, ransomware attacks, and other cyber threats.

The problem is how business insurance is traditionally purchased

Business insurance has a reputation for being complicated. You're filling out endless forms, trying to make sense of confusing policies, and chasing quote comparisons that never arrive on time. It’s slow, frustrating, and frankly, outdated.

For time-poor business owners, this can lead to two outcomes: Either sticking with a policy that may be no longer right, or giving up altogether. But neither options will protect your business if something goes wrong.

That's where BizCover comes in

The YML Group has partnered with BizCover, Austalia's leading online insurance provider, to bring our clients easy, affordable insurance options from leading Australian insurers like QBE, Vero, Dual and Chubb.

Instead of spending hours calling different providers or filling out forms, you can jump online, compare multiple quotes for multiple products instantly and secure your cover without any paperwork necessary. It’s fast, easy, and designed for business owners who don’t have time to waste.

Protect your business with confidence

Insurance shouldn’t feel like a chore. With BizCover, you can quote, compare and buy the right policies for your business all in one place. No forms, no phone calls, no fuss. They even offer automatic renewals, so you are worry-free when it comes to insurance. Ready to protect your business properly? Head to BizCover and sort it all out in just a few clicks.

This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.

© 2025 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769

How can YML help?

Talk to our trusted advisors today to see how YML Group can assist you with your insurance needs through BizCover, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.