From 1 July 2026, the government will introduce a new tiered tax on large super balances, with the goal of reducing generous tax concessions for those with more than $3 million in superannuation.
Under the revised Division 296 tax, the rate will depend on your total super balance:
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$3m–$10m: Extra 15% tax on earnings in this tier (total 30% tax)
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Over $10m: Extra 25% tax (total 40% tax)
Critically, the new model no longer includes unrealised gains — so you won’t pay tax on paper profits from assets like property or shares unless they’re sold.
The thresholds will be indexed to inflation, and the ATO will calculate an individual’s total super balance across all funds.
The government also announced a rise in the Low Income Super Tax Offset (LISTO) threshold from $37,000 to $45,000 from 1 July 2027, with the maximum offset increasing to $810.
What You Can Do:
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Check your super balance and forecast for 2026
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Review asset allocations and liquidity
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Stay updated when draft legislation is introduced
For most Australians, this change won’t apply. But if you’re close to the $3 million threshold now is the time to prepare.
