Who will pay the new Division 296 superannuation tax?

Individuals with a total super balance above $3 million are in scope. The higher rates apply to earnings attributable to the portion of a member’s balance above $3 million, not to the first $3 million. Aggregation across all funds applies, including SMSFs and APRA-regulated funds.

When will Division 296 start to apply?

The bill has passed Parliament and awaits Royal Assent. It is scheduled to commence from 1 July 2025, subject to final confirmation. Members and advisers should model potential liabilities now, ensure liquidity planning in funds, and prepare records for valuations and earnings attribution.

How should SMSFs plan for the higher rates?

Start with a balance map across members and funds. Review asset location, contribution splits between spouses, pension timing, and cash buffers for potential liabilities. Consider whether new savings are better outside super. Document decisions, update investment strategies, and seek licensed advice before changing structures.

What is LISTO and could it change contributions behaviour?

LISTO refunds up to $500 of contributions tax for eligible low-income workers, usually those earning up to $37,000. Any policy boost to LISTO or broader eligibility could increase voluntary contributions and salary sacrifice among lower-paid workers, while high-balance members reassess super versus non-super investing.

Global Market Insights

Superannuation Tax March 15: Division 296 Targets $3m+ Balances

ByHuzaifa Zahoor March 15, 2026

Australia’s superannuation tax is set to change under Division 296, with higher effective rates for very large balances. The law has passed Parliament and awaits Royal Assent, making this a live planning issue for SMSFs and advisers. Earnings tied to the $3m–$10m portion will face 30%, and earnings above $10m will face 40%. We explain who is affected, outline examples, and share practical allocation ideas, plus what possible LISTO changes could mean for low‑income workers.