High-balance super members need to pay close attention to the Division 296 tax rules. The measure is now law and applies from the 2026–27 financial year for individuals whose total super balance exceeds the large super balance threshold.
Who may be affected?
For the 2026–27 income year, the large super balance threshold is $3 million and the very large super balance threshold is $10 million. Broadly, an additional 15% tax can apply to taxable super earnings linked to the portion above $3 million, with an additional 10% applying to the portion above $10 million.
What makes the calculation different?
- Valuations matter: The calculation relies on total super balance values and relevant super earnings reported by funds, so asset valuations and reporting will be important.
- SMSFs may need extra work: SMSF trustees may need to report relevant super earnings for in-scope members from the 2026–27 annual return onwards.
- Defined benefit interests need special handling: Separate calculation and reporting methods may apply.
- The liability sits with the individual: The tax is assessed to the individual, who may pay it personally or elect to release money from super, depending on the rules and circumstances.
If your balance is near the threshold, it is worth modelling the impact early and considering how liquidity, asset mix and estate planning may be affected.
We’re here to help—no jargon, no pressure, just honest advice.
Book a free 30-minute consultation to review your tax position for 2024-2025. We’ll look at your situation, identify opportunities, and build a plan that works for you.
