Division 296 Tax Resources
Last updated: March 2026
Division 296 proposes an additional tax on superannuation earnings for individuals with very large super balances. With the measure receiving Royal Assent on 13 March 2026, it is confirmed to apply for the first time for the 2026/27 financial year to those members with a total superannuation balance (TSB) above $3 million.
Under the proposal, earnings attributed to balances over $3 million would be taxed at 15%, with a further 10% applying to earnings on amounts above $10 million.
Use the tools and resources on this page to understand how Division 296 may affect you, including a calculator to help estimate any potential tax based on your super balance and realised earnings.
Try our Division 296 Calculator
A quick way to estimate whether Div 296 may apply to you based on your super balance and realised earnings.
Learn more about Division 296
An article explaining the current rules and implications of Division 296 for large superannuation balances.
Frequently Asked Questions
Common questions about Division 296 and how it may affect your SMSF.
Division 296 tax is a personal tax that applies to individuals whose total superannuation balance across all funds exceeds $3 million. Although it’s assessed on the individual, the tax is calculated using the earnings of their super funds.
- Up to $3 million: No change.
- $3 million – $10 million: Up to 30% on earnings attributable to this portion (standard 15% fund tax + additional 15% Div 296 tax).
- Above $10 million: Up to 40% on earnings attributable to this portion (15% fund tax + 25% Div 296 tax).
Yes, having passed Parliament and received Royal Assent. However, the supporting regulations are still in draft form and are yet to be finalised.
Yes, whilst it wasn’t in the original proposal it was updated to include indexation. The $3 million threshold will increase in $150,000 increments and the $10 million threshold in $500,000 increments.
Division 296 applies from 1 July 2026. The first financial year affected will be 2026–27.
The tax applies to anyone whose total super balance exceeds $3 million across all their superannuation interests, including SMSFs, retail funds, and industry funds.
No. While the original proposal included unrealised gains, this was removed.
A critical transitional measure has been included for SMSFs and other small funds.
Trustees will be able to make a one‑off election to reset the cost base of assets held directly by the fund to their market value as at 30 June 2026, solely for Div 296 purposes. The intent is to ensure that capital growth accrued prior to the commencement of the regime is not retrospectively taxed.
There’s no one‑size‑fits‑all answer. Decisions about withdrawing super depend on your structure, investment strategy, and tax position outside super. It’s best to seek personal advice before taking action.
The tax only applies once an individual’s total super balance exceeds $3 million. However, SMSF members who may reach that level in future can take steps now to manage how the tax might apply to them later, including the CGT relief measure.
Disclaimer:
These resources have been prepared by SuperConcepts for general information purposes only. It is not financial product advice and has been prepared without taking into account any individual’s personal objectives, financial situation or needs. It is not intended to be a complete summary of the subject matter and should not be relied upon as such. You should consider seeking independent, professional advice that is specific to your personal circumstances before acting on any information contained herein.
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