Australia’s Div 296 Superannuation Tax Reform Still in Limbo
Although the proposed start date of 1 July 2025 has passed, Australia’s plan to introduce an additional 15% tax on super balances over $3 million—known as Division 296—remains unlegislated.
The reform continues to spark debate, particularly around its proposal to tax unrealised gains, which many believe could cause liquidity and valuation challenges across the super landscape.
This update is important because, despite the uncertainty, Division 296 still features in Federal Budget forecasts, meaning affected members and advisers must stay alert. The first balance test is expected on 30 June 2026, leaving time for strategic planning, but premature action could prove costly if the law changes again.
- Read Baumgartners’ full analysis at Division 296: Superannuation Tax Reform in Limbo
Related reading
Australian’s Super Reforms back on track following Labor win
Source: https://www.baumgartners.com.au/