The key numbers for 2026–27
- Large super balance threshold: $3 million. An extra 15% applies to the share of super earnings linked to the balance above it.
- Very large super balance threshold: $10 million. A further 10% applies to the share of earnings linked to the balance above it.
- Both thresholds are indexed to CPI in future years: the $3 million threshold in $150,000 steps and the $10 million threshold in $500,000 steps.
When it applies
For 2026–27, the tax applies if your total super balance at the end of the year (30 June 2027) is above $3 million. From 2027–28 it applies if your balance just before the start of the year or at the end of the year is above the threshold. The ATO says the first assessments, for 2026–27, will issue in the later half of the 2027–28 financial year. The tax can generally be paid from your super fund.
Who should look at this now
- SMSF members with large balances, especially where the fund holds business real property or other assets that are hard to sell. See SMSF and business property.
- Couples where one partner holds most of the super. Contribution splitting and spouse strategies may matter: spouse contributions and splitting.
- Anyone planning a large contribution, such as from a business sale: selling your business, super and CGT.
Do not make sudden withdrawals or restructures without advice. Getting money back into super later is limited by the contribution caps and the transfer balance cap.
Quick answers
What is the Division 296 tax?
An extra 15% tax on the share of super earnings linked to a total super balance above $3 million, plus a further 10% on the share linked to the balance above $10 million, from 2026–27.
When will the first Division 296 assessments be issued?
The ATO says assessments for 2026–27 will begin issuing in the later half of the 2027–28 financial year.
Is the $3 million threshold indexed?
Yes. From 2027–28 it is indexed to CPI in $150,000 increments; the $10 million threshold in $500,000 increments.
Sources
- ATO: Division 296 tax on large super balances
- ATO: Be ready for new tax on large and very large super balances (7 July 2026)
- Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026
General advice warning. This article is general information only and does not take into account your objectives, financial situation or needs. Rules, rates and thresholds change; check the sources above. Consider the relevant PDS and our Financial Services Guide and seek personal advice before acting. FinForce is a Corporate Authorised Representative (No. 001241242) of Financial Force Pty Ltd, ABN 42 091 425 464, AFSL 238337.