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

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)

Sources

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