Since 1 July 2017, more Australians pay double contributions tax (15% +15%) due to the lowering of the ‘Division 293 tax’ income threshold from $300,000 to $250,000.
Australians with adjusted taxable income of $250,000 or more are hit with extra contributions tax, which means all concessional contributions are hit with 30% tax rather than 15% tax.
Previously exempt fund members (that is, those in certain public sector funds), are also subject to this extra tax. This expanded measure will raise $2.5 billion over 4 years.
For more information, see SuperGuide article Double contributions tax for more high-income earners.