Division 296 Tax Explained

Division 296 Tax Explained. A Comprehensive Guide to Section 296 of Tax Act 1961 Rules and Certain Notifications to Division 296 proposes a 15% tax on super balances over $3m, but it's only on the earnings above this threshold, not the entire balance increase From 1 July 2025, the Government has proposed an 'additional' tax of 15% on earnings on an individual's total superannuation balance (TSB) over $3 million at the end of a financial year.

Division 296 Tax SMSFs & HighValue Superannuation Balance
Division 296 Tax SMSFs & HighValue Superannuation Balance from www.linkedin.com

A critical part of the change is to alter the definition of "total superannuation balance" for everyone - even those with less than $3m. The Division 296 tax was originally announced in the lead-up to, and as part of, the government's federal budget 2023-24

Division 296 Tax SMSFs & HighValue Superannuation Balance

Division 296 proposes a 15% tax on super balances over $3m, but it's only on the earnings above this threshold, not the entire balance increase From 1 July 2025, the Government has proposed an 'additional' tax of 15% on earnings on an individual's total superannuation balance (TSB) over $3 million at the end of a financial year. From 1 July 2025, the Government has proposed an 'additional' tax of 15% on earnings on an individual's superannuation benefits over $3 million at the end of a financial year

The Auditors Institute LTD on LinkedIn Proposed Division 296 Tax. We have summarised below the key points of the newly released draft legislation, which is open for comments until 18 October 2023, and therefore subject to. The new tax on super, Division 296 (D296) of the Income Tax Assessment Act 1997, is proposed to apply to the 2025/26 financial year and beyond

Breaking down Division 296 tax ifa. The Division 296 tax was originally announced in the lead-up to, and as part of, the government's federal budget 2023-24 Result: In this scenario, the individual would owe $4,252.50 in Division 296 tax for the year