Proposed Div 296

The Federal Government intends to legislate an extra 15% tax, applied to earnings from the portion of a superannuation balance over $3,000,000. There is debate regarding indexation of the $3,000,000 threshold and the tax applying to unrealised gains within the superfund during a 12-month period.

To provide further advice we need to see the legislation. However, the earliest start date for Div 296 tax is 1 July 2025 and therefore the earliest “testing date” would be 30 June 2026.

A member who has met a condition of release has the option to withdraw balances over $3,000,000 and invest outside the superfund before 30 June 2026.

After the legislation is passed, please contact your financial advisor to discuss your options.