Who will pay the new Division 296 tax?

Members with high-balance super are targeted. Earnings linked to the portion of balances between A$3 million and A$10 million will face 30%, and earnings linked to balances above A$10 million will face 40%. If your total balance is below A$3 million, these higher rates will not apply to you.

How will indexed thresholds affect my planning?

Indexation helps thresholds move over time, reducing bracket creep. If your balance sits near A$3 million or A$10 million, model how contributions, market returns, and indexation could shift you between bands. This guides decisions on contributions, withdrawals, and the timing of large realisations inside super.

What does the low-income offset lift mean for me?

A higher low-income offset means lower effective tax for eligible lower-paid workers within super settings. This supports continued contributions and retirement savings growth despite higher rates for very large balances. Households with differing incomes may see better overall outcomes when contributions remain steady and fees stay low.

Should I move assets out of super because of the new superannuation tax?

Not automatically. Compare after-tax outcomes across structures. Consider the higher rates inside super at large balances, potential CGT discount changes outside super, income needs, and liquidity. Many will benefit from a mix: growth assets partly outside super, income assets inside, with careful timing of realisations and rebalancing.

Law and Government

Australia Superannuation Tax March 15: 30-40% on Big Balances, Offset Lift

ByDanny Kontos March 15, 2026March 15, 2026

Australia’s superannuation tax is set to change after the Greens agreed to back Labor’s revised plan. Earnings linked to balances between A$3 million and A$10 million will face 30%, and earnings above A$10 million will face 40%, with thresholds indexed. The low-income offset will also be raised. With Senate passage effectively secured this week, investors should review high-balance super, SMSF, and property settings. Budget talks on trimming the CGT discount and capping negative gearing add more moving parts. We outline the key shifts and the steps to take now.