In this guide
Changes announced to Division 296 and LISTO
Treasurer Jim Chalmers announced major changes to the proposed Division 296 legislation, which had been due to commence from 1 July 2025 but has not yet been legislated.
The key changes are summarised below.
| 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 |
Changes were also announced to the Low Income Superannuation Tax Offset (LISTO) which as the names suggests provides a tax offset to low income earners. LISTO has been frozen for 13 years but from 1 July 2027 the eligibility threshold will rise from $37,000 to $45,000. At the same time the tax offset cap would increase from $500 to $810.
None of these changes have yet been legislated.
Six super funds earn retirement tick of approval
Ratings group Chant West and Epic Retirement Institute have teamed up to assess super funds based on their retirement readiness, with just six funds earning the ‘Epic Retirement Tick’ – powered by Chant West.
Those six funds are: the Australian Retirement Trust – Super Savings, Aware Super, Brighter Super, Hostplus, Telstra Super and UniSuper.
The framework assesses 18 key criteria, including investment performance, fees, whether the fund offers a lifetime product, the fund’s drawdown strategies, financial advice offerings, tools and calculators and any retirement seminar or structured education offerings.
Funds must satisfy at least 12 of the 18 criteria to earn the tick.
“Ultimately, we want as many Australians as possible to have access to the advice, products, tools and services that help them maximise their financial security in retirement,” Chant West general manager Ian Fryer said.
Author and founder of the Epic Retirement Institute, Bec Wilson, said the report was important because not only does it highlight the best funds in terms of retirement readiness, but it also sends a message to the funds.
“That’s really important. Everyday Australians approaching retirement need to have a voice at the table, so they’re not invisible in the system that’s meant to serve them,” she said.
Learn more about the Epic Retirement Tick, and sign up for our upcoming webinar.
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