The government has announced some key changes to the proposed Division 296 super tax following industry feedback.
The tax will now only apply to realised investment earnings — that is, actual profits when an asset is sold — rather than unrealised gains on paper.
It will still apply to super balances over $3 million, with those earnings taxed at 30%, but there will now be a second tier for balances over $10 million, where earnings will be taxed at 40%.
Both thresholds will be indexed to keep pace with inflation, and the new rules are set to start from 1 July 2026, with the first tax assessments expected in 2028.
Treasurer Jim Chalmers said the changes are designed to make the system fairer while maintaining generous tax concessions for the vast majority of super fund members.
