Division 296 $3M Super Tax Moves Forward
The Australian Government’s Building a Stronger and Fairer Super System Bill has now passed both houses of Parliament, clearing the way for the introduction of the proposed Division 296 superannuation tax changes.
The legislation passed the Senate late on 10 March 2026 with a vote of 33 to 22, following its approval by the House of Representatives the previous week. Debate in the Senate was limited under a guillotine motion supported by the Greens, bringing the discussion to a close and allowing the bill to proceed to its final vote.
The bill introduces additional tax measures for individuals with very high superannuation balances and has generated significant debate within the industry and political sphere. Some senators and industry groups have raised concerns about the long-term implications for retirement savings policy, while others argue the changes are targeted at ensuring the super system remains sustainable and equitable.
According to SMSF Association CEO Peter Burgess, the industry will now be watching closely to see whether the revenue generated by the new measures aligns with expectations once implementation costs are taken into account.
- Read the full article: https://www.smsfadviser.com/super-bill-passes-through-senate/
The legislation forms part of the Australian Government’s broader agenda to reshape aspects of the superannuation system. However, debate in the Senate highlighted ongoing political and industry concerns about how major structural changes to retirement savings should be introduced and whether further reforms may follow.
For SMSF trustees and individuals with larger super balances, the passage of the bill marks an important development that may affect long-term superannuation planning.