09

Feb

Government announces changes to proposed Division 296 tax

The Government recently announced that it is making a number of practical changes to the design and implementation of its policy to better target superannuation concessions.Editor: The previously announced measure regarding these changes involved effectivelyimposing, from the 2026 income year onwards, an additional tax of 15% on a percentage of“superannuation earnings” for individuals with superannuation balances above $3 million.The Treasurer stated that the Government’s changes “take two years of feedback into accountwhile still maintaining the main objectives of our policy.”First, a new second threshold will be introduced to better target super concessions onthe superannuation earnings of large balances above $10 million, with earnings above thatthreshold taxed at an additional 10%.Secondly, the Government will index the large balance thresholds of $3[…]