Australia Better Targeted Super Concessions Calculator (Div 296)
Calculate the Better Targeted Super Concessions (Division 296) tax for 2026 — Treasury's new tax on the earnings attributable to super balances above $3M. From 1 July 2025: additional 15% tax (on top of 15% existing super earnings tax) on earnings proportional to balance above $3M. Reduces tax concessions for very-large super balances.
Division 296 — What It Does
From 1 July 2025: additional 15% tax on earnings attributable to the portion of super balance above $3M. Combined with existing 15% super earnings tax = 30% effective rate on the high-balance portion. Threshold NOT indexed (stays at $3M nominally, will tighten over time as wages grow). Treasury estimates affects ~80,000 Australians initially.
How Earnings Attributable to >$3M Is Calculated
Proportion = (Total Super Balance - $3M) / Total Super Balance. Earnings = Closing Balance - Opening Balance + withdrawals - net contributions. Earnings × Proportion = the taxable portion. Then × 15% = Division 296 tax. Includes UNREALISED gains — controversial point, taxed even if not sold. Example: TSB $5M, earnings $200K → Proportion 40%, taxable earnings $80K, Division 296 tax $12,000.
Loss Carry-Forward
Negative earnings (super balance drops) carry forward to offset future Division 296 earnings. Example: TSB drops $100K in year 1 → carry $40K loss (Proportion × $100K) forward. Year 2 earnings $200K → first $40K offset → only $40K taxable. Cannot offset against other taxes. Cannot be transferred to other members or refunded.
Payment Mechanics
ATO will issue Division 296 assessment after year-end. Two payment paths: (1) Pay from personal funds (cash, taxable income). (2) Pay from super fund via release authority (similar to Div 293 mechanism). Most affected members will use super-fund release. Annual obligation. Most superfunds will report TSB and earnings to ATO automatically by Oct 31 each year.
Sources: Australian Taxation Office (ATO) Division 296 information, Treasury Better Targeted Super Concessions consultation paper, Federal Budget 2023-24. Last updated: May 2026.