“What is the $3M super tax” #tax

If you have a high balance in your superannuation, there's a significant change coming on 30 June 2026 that you need to be aware of.

Division 296 tax is now legislated, and it’s going to change the way earnings are taxed for those with higher balances. From mid-2026, an extra 15% tax will apply to earnings on super balances over $3 million bringing the total tax rate on those earnings to 30%. There are also further tax implications for balances exceeding $10 million.

What does this mean for your strategy? Essentially, the "tax-haven" status of super for very high balances is shifting. If you're in this position, it’s worth sitting down and looking at whether keeping that wealth inside super is still the most efficient path for you.

For some, it may now be more tax-effective to hold a portion of those funds outside of the super environment whether that’s in your own name, a trust, or a company structure. Every situation is different, but with the 30% rate on the horizon, now is the time to run the numbers and see if your current structure still serves your long-term goals.

General advice only. Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).

#Superannuation #Division296 #WealthPlanning #TaxStrategy #RetirementPlanning