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Division 296 Super Tax Bill introduced to Parliament

Treasurer introduces ‘Div 296’ to Parliament

The government has officially introduced the Division 296 bill five months after the Treasurer conceded defeat on taxing unrealised gains. 

Treasurer Jim Chalmers introduced the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 to the House of Representatives on Wednesday morning, spruiking both the $3 million super tax portion as well as changes to the LISTO. 

Explaining the Division 296 portion of the bill, Chalmers said it “reduces tax concessions available to individuals with total superannuation balances above $3 million”. 

“It will mean the concessional tax rate applying on future earnings on balances between $3 million and $10 million will be a combined headline rate of 30 per cent.”

“Earnings corresponding to balances below $3 million will continue to be taxed at 15 per cent in the accumulation phase and earnings will remain tax free in the retirement phase. The concessional rate applying on future earnings on balances above $10 million will be 40 per cent.” 

The Treasurer also acknowledged the super industry and the wider Australian community for their “engagement and feedback” on the legislation.  

The introduction of the bill follows the government’s October 2025 backflip on taxing unrealised gains after the plan received heavy criticism. 

Under the version of the tax that the Treasurer had proposed more than two years ago, all earnings above $3 million would be taxed at 30 per cent, rather than the 15 per cent under current rules. This would also apply to unrealised gains and was not subject to indexation. 

The new version would see the additional tax payable only on the realised investment earnings generated by the portion of an individual’s total superannuation balance that exceeds $3 million, as well as a higher tax rate totalling 40 per cent on earnings from the TSB portion exceeding $10 million. 

Alongside these changes, the start date was also pushed back from 1 July 2025 to 1 July 2026. 

Unsure how Division 296 could impact your super strategy?

Speak with Omnis’ SMSF Specialist Peta Berry for tailored guidance on navigating the changes announced — book a confidential review today.

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SMSF Adviser (2026) Treasurer introduces Div 296 to Parliament, 11 February. https://www.smsfadviser.com/treasurer-introduces-div-296-to-parliament/

Justin Flavel

Managing Director

Justin’s experience spans across 20 years in accounting, financial analysis and general business practice.

Although born and bred on the land, Justin’s interest was more in spreadsheets, ledgers, and finance which led him to attend university. In 1992, Justin graduated with a Bachelor of Business majoring in Accounting and Finance. As well as qualifying as a CPA member and becoming a Fellow of the Taxation Institute of Australia, he began gaining practical experience in small and mid-tier accounting practices.

During the late 90s, Justin decided to expand his horizons and travel through Europe. It was during this time that he seized the opportunity to expand his knowledge on the workings of large organisations by taking on roles in multinational corporations.

Today, Justin’s passion is in facilitating businesses to grow and evolve. His focus is on acting in the role of business mentor to help clients develop the full potential of their businesses. He joins clients on their unique journey, and provides the tools and knowledge they need along the way to make the right decisions.

Justin’s aim for his clients parallels his own philosophy and personal journey—focusing on his own career growth and business success while maintaining balance in his life with his wife and three daughters.

Omnis Group Managing Director - Justin Flavel