Division 296 is coming into play from July 1st 2026 #division

Division 296 is coming into play from July 1st 2026, and if your super balance is over $3 million this one is worth paying attention to.
Essentially if your balance is above $3 million you'll have an extra 15% tax applied to the proportion of income earned by the fund over that $3 million threshold. And if your balance is over $10 million, there's an additional 10% on top of that which can take you up to a 40% tax rate on earnings above $10 million.
The good news is you do have a transitional period until July 1st 2027 before it actually affects the tax within your fund, so there is time to make changes and look at your options whether that's bringing your balance down, moving certain assets like property or land outside of the fund, or just having a proper conversation about what makes sense for your situation.
If any of this applies to you, please do reach out there's a real opportunity here to get ahead of it before it kicks in and make sure you're not paying more tax than you need to. 😊
Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401)

#Division296 #Superannuation #TaxPlanning #WealthStrategy #financialadvice