There’s a quiet shift coming to super… and for a small group of Australians, it’s a big one.  If your balance is pushing past $3 million, the rules of the game are about to change — not for everyone, just for those who’ve built serious wealth inside super.

Division 296

From 1 July 2026, the new Division 296 tax comes into play. And here’s the real story… it’s not about punishing success — it’s about tightening the generosity of super tax concessions at the top end. Until now, super has been one of the most tax-effective environments available. But the government has drawn a line in the sand.

If your total super balance is:

• Under $3 million → nothing changes (still 15% tax on earnings)
• Between $3M and $10M → an extra 15% tax applies to that portion (effective 30%)
• Above $10M → an extra 25% tax applies (effective 40%)

So what does that mean in plain English?

The more you hold above $3 million, the less “tax shelter” super becomes. Now here’s where it gets technical — but important.

This tax isn’t applied at the fund level like normal super tax. It’s assessed personally based on your share of earnings, including unrealised gains. That means you could have a tax bill… even if you haven’t sold anything.

And for SMSFs, there’s an added layer: Earnings are calculated with specific adjustments, Actuaries may be involved,

The ATO calculates your liability personally.

Even estate planning gets pulled into this conversation — because super isn’t automatically part of your estate, yet this tax can still arise in the year of death. So this isn’t just a “tax change”… It’s a strategy shift moment.

If you’re anywhere near that $3 million mark, this is your window. Not to panic — but to plan. Because the real opportunity here isn’t avoiding tax…  It’s making smarter decisions about where your wealth lives, how it grows, and what it delivers for you long-term.

This is the time to sit down, model scenarios, review structures, and make intentional moves — not reactive ones. The clients who get ahead of this now?  They’ll be the ones who stay in control.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements. To book an appointment, use our online booking system, give us a call on 07 3289 1700, or email us at reception@rgaaccounting.com.au.We look forward to assisting you this tax season!

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.