Proposed Division 296 Super Tax Amendments – What’s Changing?
The Federal Government has announced proposed changes to the Division 296 superannuation tax, aiming to deliver a more balanced and practical outcome for members and trustees with balances above $3 million.
→ Start Date Pushed Back – Proposed to commence 1 July 2026
→ Unrealised Gains Removed – Only realised earnings would be taxed
→ Tiered Tax Rates Suggested:
🔹 30% for balances between $3M–$10M
🔹40% for balances above $10M
→ Indexation Introduced – Thresholds to be indexed over time
→ Defined Benefit Pensions – Proposed to receive comparable treatment
Why it matters:
These proposals reflect constructive engagement with industry feedback and aim to restore fairness and certainty to the superannuation system. While the finer details are still to come, the direction is positive.
Our team will provide further guidance for SMSF clients and members with larger balances as information becomes available.
If you’d like to understand what this could mean for your SMSF in the meantime, please reach out to our team on (02) 9264 5400
By email, phone, or in-person – our outsourced accounting firm is ready to discuss how we can help take your business to the next level.
Milan Debelak
Liftronic
Ms Jenny Chu
Abundance Business Services
Paul Vorbach
Academy Global
Tony Lu
Inner Wealth
Amy Curl
Sydney Improvised Music Association (SIMA)
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