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Treasurer Jim Chalmers has confirmed several key refinements to the proposed Division 296 tax on 13 October 2025, outlining how high-balance superannuation members will be taxed from 1 July 2026.
Key Updates:
- Unrealised gains removed: Division 296 will now apply only to realised income, such as interest, dividends and realised capital gains, rather than paper increases in asset values.
- Two-tier tax structure introduced
- $3 million threshold – Earnings on balances above this will attract an additional 15% tax
- $10 million threshold – Earnings above this level will attract an additional 25% tax
- Indexation introduced: Both $3 million and $10 million thresholds will be indexed to the Consumer Price Index, to stay align with movements in the Transfer Balance Cap.
- Implementation deferred: The new Division 296 regime will commence from 1 July 2026, with the first applicable income year being 2026-27.
Next Steps
While the detailed legislation has yet to be released, it is prudent for impacted members to wait for the final law before making any major changes. However, it may be timely to review some strategies, such as family super equalisation with your financial adviser to prepare for the new framework.
Moneta Super will continue monitoring the legislative process and provide updates once the final details are released.
For more details on Treasury Better Targeted Superannuation Concession, please refer to: https://treasury.gov.au/publication/p2025-709385-btsc
Important Information INFORMATION
Moneta Super is a privately owned and independent Self Managed Superannuation Fund administration service and located in Camberwell, Victoria. Information about its owners can be read here.
It is independent in that it has no form of ownership, sponsorship or other arrangements with other businesses or organizations. It has no contractual arrangements with other individuals, companies or other organizations that can limit its independence.
Moneta Super does not have an Australian Financial Services Licence and therefore it cannot advise on the suitability of SMSFs for customers nor can it advise on the suitability of any strategies that might be beneficial for trustees and members. However, it can inform trustees about strategies that may be possible but stresses that trustees should seek the advice of a properly qualified and licenced Financial Planner before making any decisions of this nature.