Who will pay the new Division 296 taxes?

Members with total super balances above A$3 million will face 30% on earnings linked to that excess, and 40% above A$10 million. Balances under A$3 million keep current settings. Both accumulation and pension accounts count toward the total balance, so SMSF and retail fund members should review their combined position.

What are practical division 296 tax strategies to consider now?

Prioritise accurate valuations, liquidity checks, and a June 30 governance review. Rebalance asset location, keeping defensive and franked assets in super and shifting high-growth assets outside. Model CGT timing, use spouse re-contributions to balance totals, and test alternatives like companies, trusts, or investment bonds for long-term goals.

How does asset location help reduce the Division 296 impact?

Asset location places lower-growth and franked income inside super, and higher-growth assets outside. This can lower the portion of earnings exposed at 30% or 40% while using CGT discounts and franking credits in personal or trust structures. Always model cash needs, risk, and timeframes before moving assets.

What should SMSF trustees do before 30 June?

Update the investment strategy, minute decisions, and obtain market valuations. Check pension payments, reserves, and liquidity for any Division 296 assessments. Review property and LRBAs, and plan CGT events. Consider spouse contributions and re-contributions to balance family totals. Keep records clean and seek written tax and legal advice.

Global Market Insights

March 14: Division 296 Super Tax Spurs HNW Super Fund Strategies

ByHuzaifa Zahoor March 13, 2026March 13, 2026

Division 296 tax strategies matter now that Parliament has passed higher taxes on super earnings for very large balances. From July, earnings tied to balances above A$3 million face 30%, and amounts above A$10 million face 40%. Wealthy members and SMSF trustees are already weighing asset location, liquidity, and timing changes. We explain who is affected, the calculation basics, and practical steps to consider before 30 June. Our goal is clear, low-risk actions aligned to your goals and Australian tax rules.