Division 293 Tax Explained

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  • Опубликовано: 23 дек 2024

Комментарии • 27

  • @JasonLianneMac
    @JasonLianneMac Год назад

    Excellent video, thank you for clarifying this for me. I’ve been confused for a long time on 293 but finally feel I understand the basics of it now.

  • @jiminy2731
    @jiminy2731 Год назад +1

    best video on youtube by far. The examples are great, but topped it up with visuals! Thanks mate.

  • @EthanRooshock
    @EthanRooshock Год назад

    Great topic to cover! There's a lot of confusion when people get these letters from the ATO. Definitely a sneaky tax most people aren't aware of!

  • @zaevma
    @zaevma Год назад +1

    Great video on covering Div 293! Subbed and Liked!

  • @Only1BrokerVasko
    @Only1BrokerVasko 5 месяцев назад +1

    Thank you, that was a great video! I had a question: If my income as an employee for FY25 is to be $250,000 inclusive of super, would I be able to reduce my taxable income by making concessional contributions or/and a novated lease to avoid paying Div 293 tax? Or would it just cancel out? I have unused carry forward super contributions of about $50k for the last 5 years that I want to take advantage of this year. Thank you!

    • @GuidedInvestor
      @GuidedInvestor  5 месяцев назад +1

      Unfortunately, concessional contributions nor a notated lease would help avoid division 293 tax. Concessional contributions are added back, and a notated lease will incur reportable fringe benefits which is also added back

  • @aparvkishnov4595
    @aparvkishnov4595 2 месяца назад

    Nice video. Since you asked for questions. My question is: Say if I do voluntary super contribution to my partner say $20K (and I am eligible to do so). Then will $20K be deducted from the Div 293 income?

  • @niroshaabeysundara1713
    @niroshaabeysundara1713 6 месяцев назад +1

    Great explanation.

  • @trace.l1977
    @trace.l1977 2 года назад +2

    I don't quite understand the example 2, why full super contribution is taxed, not the exceed part? Could you please explain it a bit? Thanks

    • @GuidedInvestor
      @GuidedInvestor  2 года назад

      It's the lower of the amount in excess of the threshold and the div 293 super contribution. In that example the super contribution is the lower of the two.
      To put it more practically, you can't be taxed more than what is contributed.
      Hope that helps!

    • @trace.l1977
      @trace.l1977 2 года назад

      @@GuidedInvestor thanks I think I will watch again with your explanation

  • @jate.photography
    @jate.photography 7 месяцев назад +1

    Great explanation video mate on this hidden greedy tax. Got a few questions:
    1) why is rental loss added? (usually a negative gearing strategy)
    2) similarly with capital gain which is not exactly "income" and the govt has already slogged the tax on this
    3) it's odd that this tax is applied when for example you have sold a property in the given FY, even though technically no additional contributions were made to super per se?
    4) any smart tips on how we can structure our salary/incomes to avoid Div293?

    • @GuidedInvestor
      @GuidedInvestor  7 месяцев назад

      Hey mate, you're going to have to ask the legislators about questions 1 - 3 😅 With regards to 4, yes there are strategies you can implement to structure your income but these only really apply to self-employed people...

    • @slightfimulator4888
      @slightfimulator4888 2 месяца назад

      Not that I agree with it but I would say the answer to 1 is that the government considers superannuation already a generous tax reduction and they don't want to let us double dip with both super and negative gearing. Division 293 is designed to penalize those who already pay the most tax and get the least benefits so they might as well make sure they hit us.

  • @_littlemissling
    @_littlemissling 2 года назад +1

    Oh I wasn't even aware of this! Carry forward unused concessional contributions also contribute to the Division 293 Super amount, doesn't it? So it's better to spread that out across multiple years rather than using all the carry forward amount in one go?

  • @GuidedInvestor
    @GuidedInvestor  2 года назад +1

    Anyone had this unexpected tax bill pop up?

    • @bada6830
      @bada6830 2 года назад +1

      yeah changed jobs had a good bonus plus long service payout/annual leave and a new job (with a pay rise) meaning I went over the limit for that year... still don't mind paying more tax (not more than I need to) given it I had more money in the pocket that year (after tax than normal, just a bit of a surprise and not a fun one)

    • @GuidedInvestor
      @GuidedInvestor  2 года назад

      @@bada6830 yeah it's not a huge deal when you have a big income year like that, it's more the surprise bill when it first catches you off guard 👍

  • @novoca1n3
    @novoca1n3 Год назад +2

    Good video but no matter how well it is explained it's still a greedy tax grab. I am forced to pay super and funds sit in a fund who take out ridiculously high fees which I cannot claim a tax deduction for. Then I get hit with another 15% tax on top of the ridiculous amounts of tax and Medicare I already pay. Super is not for the benefit of workers, it's for the benefit of Government and funds

    • @slightfimulator4888
      @slightfimulator4888 2 месяца назад

      Find a fund that doesn't pay ridiculously high fees.

  • @danielwong9608
    @danielwong9608 Год назад

    Sgc??

    • @GuidedInvestor
      @GuidedInvestor  Год назад

      Superannuation guaranteed contributions. The mandated 10.5% your employer puts in