Welcome to Tax Tuesday with Anthony Wolfenden from Positive Tax Solutions.

This week, we unpack the latest version of Div 296 — the proposed new superannuation tax that has been reintroduced to Parliament for the third time under the “Building a Stronger and Fairer Super System” reforms.

Often dubbed the “Voldemort Tax,” Div 296 has undergone major changes since its original 2023 proposal. In this episode, we break down what’s changed, what’s improved, and what high-balance super holders must do next.

What Is Div 296?

Div 296 introduces an additional tax on individuals with total super balances above $3 million.

Under the revised proposal:

• Balances between $3M and $10M

• An additional 15% tax on earnings above the threshold

• Taking the effective rate to 30%

• Balances above $10M

• An additional 20% tax on earnings above that threshold

• Taking the effective rate to 40%

Importantly, this tax is proportional — it only applies to the portion of earnings above the relevant threshold.

The Three Major Fixes in the New Bill

Anthony explains how the updated version addresses three critical flaws from the original draft:

1. No More Retrospective Taxation

A cost-base reset allows SMSFs to revalue assets to market value as of 30 June 2026 — creating a clear “line in the sand.”

2. No Tax on Unrealised Gains

The revised version removes the controversial tax on unrealised capital gains. Now, capital gains tax only applies when assets are actually sold.

3. Indexation Added

The $3M and $10M thresholds will now be indexed to inflation — reducing the risk of inflation dragging more Australians into the regime over time.

Why 30 June 2026 Is Critical

If you have an SMSF or a super balance approaching $3 million, 30 June 2026 is one of the most important dates on your financial calendar.

Before that date, you should:

• Obtain accurate, evidence-based market valuations of all SMSF assets

• Ensure your cost base is correctly reset

• Review whether restructuring or rebalancing is required

• Consider contribution splitting or spouse strategies where applicable

Your valuation is your shield. It determines how future capital gains are calculated under the new rules

Who Is Driving This?

The reforms are being introduced by the Australian Government and regulated through the Australian Taxation Office, which oversees compliance within superannuation.

Who Should Pay Attention?

• Individuals with balances near or above $3M

• SMSF trustees

• Investors in pension phase with high balances

• High-income earners planning long-term super growth

For most Australians, this tax won’t apply. But for those nearing the threshold, proactive planning is essential.

Final Takeaway

The bill is significantly improved from its original form — but it still introduces a meaningful shift in how large super balances are taxed.

If you’re close to the threshold, now is the time to:

• Speak with your accountant

• Review your SMSF valuations

• Model future growth

• Consider strategic adjustments before the deadline

Because while having $3 million in super is a great problem to have — paying unnecessary tax on it isn’t.

Catch you next Tax Tuesday.