What Is Division 296?

Division 296 is a brand-new tax, separate from and on top of all existing superannuation tax, targeting members with a Total Superannuation Balance (TSB) above $3 million. It received Royal Assent on 13 March 2026 and commences from 1 July 2026, with the first assessments covering the 2026–27 financial year.

The Formula

This is on top of the existing 15% tax super funds already pay on earnings — so the effective combined rate is roughly 30% on the portion of earnings attributable to balances above $3M, and roughly 40% above $10M. Both thresholds are indexed to CPI, so they'll rise gradually over time.

How to Use This Calculator

Enter your Total Superannuation Balance — added up across every fund you hold, including industry, retail, SMSF, and defined benefit interests — at the start and end of the financial year. Add any contributions or withdrawals made during the year, since these are backed out of the earnings calculation. Select whether you're calculating for the transitional 2026–27 year (which only tests your end-of-year balance) or a later year (which uses the higher of your start or end balance).

The Transitional Year Rule

For 2026–27 only, the government built in a special rule: only your balance at 30 June 2027 is tested, not your balance at the start of the year. This means someone who had $15 million in super on 1 July 2026 but reduced it below $3 million by 30 June 2027 would owe no Division 296 tax for that first year — a one-time transitional concession that won't apply in later years.

Why "Earnings" Isn't Just Investment Return

Division 296 doesn't simply tax your account's percentage growth — it taxes a specific calculated figure that strips out money you added or removed during the year. Without this adjustment, a large contribution could be mistaken for "earnings" and taxed accordingly, which would be unfair. The formula (end balance − start balance − contributions + withdrawals) corrects for this.

SMSF Members Have Extra Considerations

• CGT cost base reset election: SMSFs can elect, by 30 June 2026, to reset the cost base of fund assets to market value — quarantining historical capital gains from Division 296. This is irrevocable and applies to the whole fund.
• Actuarial certificates: most SMSFs will need an actuary to determine and certify earnings attributable to members.
• Negative earnings: if your fund's earnings for the year are negative, your Division 296 tax is zero — and accumulated losses can generally be carried forward.

Per-Person, Not Per-Couple

Each individual has their own separate $3 million threshold — couples don't combine balances. A couple with $5M and $500K combined will pay meaningfully more Division 296 tax than a couple with $2.75M each, even though both couples hold the same total.

What This Calculator Doesn't Cover

This estimates the core Division 296 calculation only. It doesn't model the SMSF CGT cost base reset election, defined benefit interest valuation methods, or death-year special rules — all of which need a financial adviser or accountant familiar with your specific super structure.

Where This Fits Your Bigger Picture

Pair this with our superannuation calculator and salary sacrifice calculator for your broader super planning.

Frequently Asked Questions