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The Federal Government has announced a new superannuation tax – the Division 296 tax – that will apply to total superannuation balances (TSB)^ over $3 million. We’ve outlined the changes below, and how they may impact Australians and their super balances.

What is the Division 296 tax?

Individuals with super balancess above $3 million will pay a higher rate of tax on some of their earnings above certain thresholds.

Keeping the changes in perspective

As Division 296 comes into effect on 1 July 2026, it’s important to keep any resulting changes in perspective. Super would will continue be a low-tax environment for your savings relative to most other forms of investment (for which tax rates on earnings are at your marginal tax rate).

If you’d like to chat through how this could affect you and explore tax effective strategies to improve super, please contact us online anytime, or call our Helpline on 1800 682 626, Monday to Friday 8:00am to 8:00pm AET.

^TSB refers to the combined value of all super accounts held by an individual, including SMSFs, retail, and industry funds.

Frequently asked questions

The tax will apply from 1 July 2026.

Division 296 applies to individuals whose TSB exceeds: 

  • $3 million, with earnings on your balance above $3 million to be taxed at 30% 
  • $10 million, with earnings on your balance above $10 million to be taxed at 40% 

These thresholds will be indexed to inflation, reducing the risk of bracket creep over time. 

No separate tax return is required. The ATO will calculate the liability using data reported by super funds. The tax applies to earnings attributed to the portion of your balance above the threshold (e.g. above $3 million or $10 million).

Only realised earnings (e.g. dividends, interest, capital gains from sold assets) are included.

Issued by Togethr Trustees Pty Ltd ABN 64 006 964 049, AFSL 246383 ("Togethr"), the Trustee of Equipsuper ABN 33 813 823 017 ("Equip Super"). The information contained is general advice and information only and does not take into account your personal financial situation or needs. You should consider whether this information is appropriate to your personal circumstances before acting on it and, if necessary, you should seek professional financial advice. Where tax information is included, you should consider obtaining taxation advice. Before making a decision to invest in Equip Super, you should read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product which are available at equipsuper.com.au. Financial advice may be provided to members by Togethr Financial Planning Pty Ltd (ABN 84 124 491 078 AFSL 455010) – a related entity of Togethr. Past performance is not a reliable indicator of future performance.

© 2023—2025 Togethr Trustees Pty Ltd ABN 64 006 964 049 AFSL 246383 — *Past performance is not an indication of future performance.
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