On this episode of Wealth Coffee Chats, we break down Division 296 – the proposed superannuation tax reform that could significantly impact high-balance super funds from 1 July 2026.

While a $3 million super balance may sound like a distant milestone, long-term growth, inflation, property gains, and inheritances could push more Australians into this bracket than they realise. With tax rates potentially increasing from 15% to 30% for balances between $3–10 million – and up to 40% beyond that – this is not just a high-net-worth issue. It’s a long-term planning issue.

But beyond the headline tax rates, there’s a lesser-known implication that deserves attention: how Division 296 may affect death benefits from 2027 onwards. Executors could find themselves responsible for calculating and paying additional tax on super fund income earned before a member’s passing – even after the account is closed.

In this episode, we cover:

• What Division 296 is and when it takes effect

• The new tax thresholds for super balances above $3 million

• Why long-term growth and inheritances could bring more people into scope

• What changed regarding unrealised gains taxation

• How death benefit taxation may work from 1 July 2027

• Why estate planning and structuring conversations are now critical

• What steps to consider before the new financial year begins

If you’re building wealth through super, planning retirement, or expecting significant asset growth in the future, this is an important update to understand now – not later.

As always, this episode is educational in nature. Speak to your financial adviser, accountant, and solicitor to ensure your strategy aligns with your personal circumstances.