{"id":3997,"date":"2026-02-09T16:16:50","date_gmt":"2026-02-09T05:16:50","guid":{"rendered":"https:\/\/wiselinkaccountants.com.au\/?p=3997"},"modified":"2026-02-09T16:54:05","modified_gmt":"2026-02-09T05:54:05","slug":"government-announces-changes-to-proposed-division-296-tax","status":"publish","type":"post","link":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/government-announces-changes-to-proposed-division-296-tax\/","title":{"rendered":"Government announces changes to proposed Division 296 tax"},"content":{"rendered":"\n<p>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.<br>Editor: The previously announced measure regarding these changes involved effectively<br>imposing, from the 2026 income year onwards, an additional tax of 15% on a percentage of<br>&#8220;superannuation earnings&#8221; for individuals with superannuation balances above $3 million.<br>The Treasurer stated that the Government&#8217;s changes &#8220;take two years of feedback into account<br>while still maintaining the main objectives of our policy.&#8221;<br>First, a new <strong>second threshold<\/strong> will be introduced to better target super concessions on<br>the superannuation earnings of large balances above $10 million, with earnings above that<br>threshold taxed at an additional 10%.<br>Secondly, the Government will <strong>index<\/strong> the large balance thresholds of $3 million and $10<br>million, apply these changes to <strong>realised earnings<\/strong> and push back the <strong>start date<\/strong> by one year<br>&#8220;to consult on final details and prepare legislation.&#8221;<\/p>\n\n\n\n<p>These changes mean that, from 1 July 2026:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The total concessional tax rate applied to earnings on superannuation balances between $3 million and $10 million will be 30%;<\/li>\n\n\n\n<li>The total concessional tax rate applied to earnings on superannuation balances over $10 million will be 40%;<\/li>\n\n\n\n<li>Both the $3 million and $10 million super balance thresholds will be indexed to maintain relativity with the Transfer Balance Cap.<\/li>\n<\/ul>\n\n\n\n<p>As part of these changes, the Government will also:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>adjust the earnings calculation so the concessional tax rates on large balances only apply to future realised earnings and not to unrealised gains; and<\/li>\n\n\n\n<li>apply commensurate treatment to defined benefit interests to ensure equivalent impacts, with Treasury to consult on implementation details.<\/li>\n<\/ul>\n\n\n\n<p>Editor: The Government also announced that it would boost the low-income superannuation<br>tax offset (&#8216;LISTO&#8217;), increasing it by $310 to $810, and raise the LISTO eligibility threshold from<br>$37,000 to $45,000 from 1 July 2027.<br>The Government said that it will introduce legislation to implement these changes as soon as<br>possible in 2026. Further consultation will be undertaken with the superannuation industry<br>and other relevant stakeholders to settle implementation.<br>Editor: We recently emailed our members in relation to the above changes to the $3 million<br>superannuation cap. We will continue to monitor Treasury&#8217;s consultation process and keep<br>members informed as draft legislation is released.<\/p>\n\n\n\n<p><br>Ref: Treasury website, Media Release, 13 October 2025<\/p>\n\n\n\n<p><strong><em>Please contact Wiselink Accountants if you require further information<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Government recently announced that it is making a number of practical changes to the design and implementation of it [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3999,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[61,121],"tags":[84,64,93],"class_list":["post-3997","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-english-post","category-practice-update","tag-business-tax","tag-tax","tag-tax-accountant"],"_links":{"self":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts\/3997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/comments?post=3997"}],"version-history":[{"count":2,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts\/3997\/revisions"}],"predecessor-version":[{"id":4001,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/posts\/3997\/revisions\/4001"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/media\/3999"}],"wp:attachment":[{"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/media?parent=3997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/categories?post=3997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wiselinkaccountants.com.au\/zh-hans\/wp-json\/wp\/v2\/tags?post=3997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}