Important:
Division 296 has not yet been legislated and the details below may change if legislation is amended or not passed.
On 13 October 2025 the government announced changes to the proposed legislation. Key changes are as follows.
| Original proposal | New proposal |
|---|---|
| The threshold for the additional 15% tax (ie 30%) applied on super balances above $3 million | The threshold for the additional 15% tax would remain at $3 million, but there would also be a further 10% tax (ie 40%) on balances above $10 million |
| The tax would be applied on unrealised gains | The tax would not be applied on unrealised gains – only on realised earnings |
| There were no plans to index the thresholds | The thresholds will be indexed to the transfer balance cap (currently $2m) |
| The tax would apply from 1 July 2025 | The tax would apply from 1 July 2026 |
The details contained in the following guide (and the calculator) relate to the original proposal. We will update this guide as soon as the government provides more detail.
We take a look at the proposed new tax regime for super fund members with balances above $3 million, how it will work, when it may come into play, and what you should be considering now.
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