Division 296

Does the extra super tax
reach your balance?

Division 296 commenced on 1 July 2026. The first assessment is for the year ending 30 June 2027. Answer three questions and we will tell you whether it reaches you.

Draft — not yet reviewed

This tool has not yet been signed off by the reviewing practitioner. It is not listed or indexed, and nothing on it should be relied on. The items still to be checked are listed at the bottom of this page.

Before you start

Enter your total super balance across all funds, not just your SMSF. If you have an APRA fund as well and enter only the SMSF figure, the answer will be meaningless.

This screener assumes accumulation interests. If you have a defined benefit interest, say so below — it is valued on a special basis that a balance figure cannot represent.

Your best estimate of the balance at 30 June 2027 is what counts for this year.

$
Do you have a defined benefit interest in any fund?

Most people do not. They are more common in older public sector and corporate funds.

Does your SMSF have a limited recourse borrowing arrangement?

An LRBA is a loan the fund used to buy an asset, most often property.

What a call about Division 296 covers

  1. 1

    Whether to act before 30 June 2027

    For 2026-27 only, the reference balance is the one at 30 June 2027 — the closing balance alone. From 2027-28 it is the greater of the balance just before the year starts and at the end of it, so a balance that falls mid-year can still be assessed. That makes this year a one-off.

  2. 2

    Liquidity, if the fund holds property or unlisted assets

    A tax assessed on earnings that include unrealised movements has to be paid with real money. Funds holding direct property or unlisted assets are the ones that feel this.

  3. 3

    Whether to pay from the fund or personally

    The liability is yours; payment can be made personally or released from the fund under a release authority. Deferral rules and interest apply, and liability is not the same thing as payment timing.

The reference balance. For 2026-27 the balance at 30 June 2027 is the one that counts. From 2027-28 it is the greater of the balance just before the start of the year and the balance at the end of it.

Still to be checked before this page goes live

  • Whether a Division 296 loss year carries forward. Nothing is said here about negative earnings until the operative provision is read.
  • Whether an LRBA amount is excluded from the total super balance add-back or deducted outright. Direction unresolved, so the screener does no LRBA arithmetic.