Division 296 tax has passed Parliament and will take effect from 1 July 2026

We are however still waiting on the final regulations and ATO guidance which outline the finer details of the Division 296 Tax.

Please refer to our Division 296 updates and guidance hub to receive timely updates. 

What should I do now?

• Obtain up‑to‑date appraisals for all unlisted investments and property holdings (including those held indirectly through private trusts or companies) to ensure your superannuation balance is accurately measured.
• Review the unrealised capital gains and losses within your SMSF in the lead up to 30 June 2026 to understand how different outcomes (such as retaining assets, disposing of assets, or applying the CGT cost‑base reset) may affect future tax positions.
• Review how assets are held across different structures (such as superannuation, trusts and personal ownership) to assess whether your current asset allocation and ownership mix remains appropriate.
• Review how superannuation balances are held between spouses to understand current balance levels and any potential planning considerations.
• Review your estate and succession planning arrangements, including intergenerational wealth strategies, to identify opportunities that may be brought forward or simplified.
• Seek tailored, professional advice.

Division 296 represents a significant change for individuals with high superannuation balances. It is crucial for individuals to seek tailored advice and plan accordingly to navigate these changes and the implications for their superannuation and wealth strategies. 

We’re here to help

If you’d like to discuss your current superannuation strategy, please reach out to one of our experts today. 

_{The above information is provided as an information service only and, therefore, does not constitute financial product advice and should not be relied upon as financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs. You must determine whether the information is appropriate in terms of your particular circumstances. For financial product advice that takes account of your particular objectives, financial situation or needs, you should consider seeking financial advice from an Australian Financial Services licensee before making a financial decision in relation to any of the matters discussed.}

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