There has been much in the press recently about the new Div 296 tax leaving many confused so I just want to clear up a few points here

What is it? The new proposed tax will tax the growth in a members super balance (adjusted for pension withdrawals & contributions) each year at an additional 15% but only where your balance is over $3m on the 30th June. The $3m is per person not per SMSF. The tax will be assessed to the individual once a year.

Has it been legislated? Not yet. It has been bouncing back and forth for several years now. It is more likely to get through under the new Labour government, however the accounting and tax professional bodies are still trying to get adjustments made, including changing what will effectively be a tax on unrealised gains and trying to get the limit indexed.

When will it start? The earliest year it could start if it is legislated is the 2025/26 year. So the balance at 30 June 2026 is the first measuring point.

Do I need to do anything? If you are going to be affected then we can look at restructuring but nothing needs to be done before June 2026. So just wait to see what gets passed.