What changed with Division 296 on 14 March?

Parliament passed measures lifting the effective tax on super earnings to 30% for balances between $3 million and $10 million, and 40% above $10 million. Royal Assent is pending. Affected members should review asset location, liquidity, and documentation now, so adjustments can be implemented quickly once commencement details are confirmed.

Who is most affected by the new rules?

Members with super balances above $3 million are in scope, including many SMSF trustees and high-income professionals. The impact depends on asset mix, turnover, leverage, and withdrawals. A portfolio and cash-flow review helps decide which assets stay in super and which migrate outside for better after-tax outcomes.

What are practical SMSF steps to consider?

Prioritise asset location, pause unnecessary top-ups, equalise balances across spouses where appropriate, and build a cash buffer to fund the higher impost. Update investment strategy documents and trustee minutes. Coordinate licensed tax and financial advice to ensure changes support long-term, after-tax compounding and do not create audit or compliance risks.

Should I move assets outside super now?

Not automatically. Model super versus non-super outcomes under conservative assumptions. Trusts, companies, or investment bonds may help some households, but fees, liquidity, and control differ. Make staged changes, document reasons, and confirm timing once Royal Assent is granted. Seek licensed advice before executing structural moves.

Law and Government

March 14: Division 296 Super Tax Passed—HNWIs Rework SMSF Tactics

ByDanny Kontos March 13, 2026March 13, 2026

Division 296 tax strategies move to the top of the agenda after Parliament passed the changes on 14 March, lifting effective tax on super earnings to 30% for balances between $3 million and $10 million, and 40% above $10 million. Royal Assent is pending, but high-balance members and SMSF trustees now face real allocation choices. We outline practical superannuation tax planning moves, SMSF strategies, and high net worth tax considerations you can weigh with your adviser. The goal is to protect long-term, after-tax returns while staying compliant and keeping flexibility across super and non-super structures.