Tax Planning
Division 296 Super Balance Tax: What It Means, Who It Impacts, How to Plan
With the Better Targeted Super Concessions reforms, individuals with super balances over $3M face extra tax on earnings—learn who qualifies, what earnings count, and planning tips.
By NomadicTax Research Team • 5-8 min read • August 22, 2026
## What is Division 296
From **1 July 2026**, the new Division 296 tax (Better Targeted Super Concessions) applies to **superannuation earnings** linked to balances above certain thresholds:
| Threshold | Tax Rate on Earnings Above That Threshold |
|---|---|
| $3 million (Large Super Balance Threshold) | 15 % |
| $10 million (Very Large Super Balance Threshold) | Additional 10 % |
Only the **earnings** attributable to the portion of the balance **over** these thresholds is taxed—not the entire super balance.([community.ato.gov.au](https://community.ato.gov.au/s/article/a07Mo00001w0qcO/what-division-296-tax-changes-means-for-your-super-balance?utm_source=openai))