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Super Newsletter
JULY 2025
Understanding Division 296 – the facts and strategic considerations The senate will meet later this month to reconsider the Division 296 – Superannuation (Better Targeted Superannuation Concessions) Impositions Bill which seeks to introduce additional tax on “earnings” for individuals with Superannuation balances that exceed $3million. It is anticipated that the Bill could be finalised in its current form, so let’s consider how it may be applied. The provisions contain three crucial elements to determine the additional tax that applies to an individual, summarised below: Is your total superannuation member balance at 30 June 2026 (or any later 30 June) > $3million?
No Division 296 does not apply
Yes Determine the relevant proportion (Your TSB - $3million) / Your TSB = your %
Calculate your “earnings” Your TSB (end) + withdrawals – contributions – TSB (start)
Division 296 tax = Your % x Your earnings x 15%