Division 296: New Super Tax on High Balances (over $3 million)
Division 296 is a new additional tax on superannuation investment earnings, applying to individuals with balances above $3 million. It takes effect from 1 July 2026, pushing the effective tax rate on earnings above that threshold from 15% to 30% – and as high as 40% for balances exceeding $10 million.
If your balance is well below that level, this change doesn’t affect you. But if you’re approaching or above $3 million in super, it’s time to act — it’s important you have a plan in place well before 30 June 2026. Importantly, the tax is assessed personally against you, not your fund, and cannot be offset by franking credits or personal tax losses.
Division 296 is complex because it sits between tax and financial planning. At Advisory Partner, our accountants and financial planners work together under one roof — meaning you get fully integrated advice, not two separate conversations.
To discuss your position and the options available to you, speak with your Advisory Partner Accountant or Client Manager, or book an appointment with our Financial Adviser, Clint. Your Advisory Partner Accountant or Client Manager will be included in the conversation, ensuring you receive clear, coordinated advice.