Division 296: the $3 million super tax is now law

Division 296 is no longer a proposal. The Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026 and its companion Imposition Act passed both Houses on 10 March 2026 and received Royal Assent on 13 March 2026, applying to income years starting on or after 1 July 2026 — so 2026-27 is the first affected year. The enacted design differs materially from the lapsed 2023 bills: it taxes only realised earnings, indexes both thresholds, and adds a second tier above $10 million.

Key points:
- [Division 296](/technical-resources/glossary#division-296) is **enacted law**, not an announcement: both bills passed the Parliament on **10 March 2026** and received Royal Assent on **13 March 2026** as Act No. 8 of 2026 and Act No. 9 of 2026.
- It applies to income years starting on or after **1 July 2026** — the **2026-27** year is the first year the tax can apply.
- The enacted design taxes **realised earnings only** — interest, dividends, rent and realised capital gains. The taxation of notional (unrealised) gains that featured in the lapsed 2023 bills was removed.
- Rates: an **additional 15%** on earnings attributable to the portion of a [total superannuation balance](/technical-resources/glossary#total-superannuation-balance) between **$3 million and $10 million**, and an **additional 25%** on the portion above **$10 million** — nominal headline rates of 30% and 40% once the existing 15% fund tax is counted.
- Both thresholds are **indexed to CPI** — the $3 million threshold in $150,000 increments and the $10 million threshold in $500,000 increments — consistent with the existing approach for the [transfer balance cap](/technical-resources/glossary#transfer-balance-cap).
- For **2026-27 only**, liability is tested solely on the total superannuation balance at **30 June 2027**; from later years the greater of the opening and closing balance is used.
- Both outstanding pieces have now landed: the **supporting regulations** were registered on **18 June 2026** (Income Tax Assessment (1997 Act) Amendment (Building a Stronger and Fairer Super System and Other Measures) Regulations 2026, F2026L00726), and the **ATO published its Division 296 guidance** in late June and July 2026 — assessment and payment mechanics are matters for that ATO guidance, not for this legislative snapshot.