Division 296 Super Tax Calculator 2025-26

Calculate the new Division 296 tax on super balances over $3 million. See your additional 15% tax on super earnings, effective rate, and how super still compares favourably to personal tax rates.

Your total super balance at the start of the financial year.

Your total super balance at the end of the financial year.

Total concessional and non-concessional contributions.

Any lump sum or pension withdrawals from super.

Your personal taxable income (for marginal rate comparison).

Enter your opening and closing super balances to calculate Division 296 tax.

Frequently Asked Questions

What is Division 296 tax?
Division 296 is a new tax that applies from 1 July 2025. It imposes an additional 15% tax on super earnings for members whose total super balance exceeds $3 million at the end of the financial year. This brings the total tax on those earnings to 30% (the existing 15% contributions tax plus the new 15%).
When does Division 296 start?
Division 296 applies from the 2025-26 financial year onwards (i.e., from 1 July 2025). The first assessments will be based on balances and earnings for the year ending 30 June 2026.
How are 'earnings' calculated for Division 296?
Earnings are calculated as: Closing Balance minus Opening Balance plus Withdrawals minus Contributions. This captures the investment return on your super, adjusted for money flowing in and out during the year.
What if my super balance drops below $3M during the year?
Division 296 is assessed based on your closing balance on 30 June. If your closing balance is $3 million or less, no Division 296 tax applies for that year, regardless of what happened during the year.
Can Division 296 tax be negative (a refund)?
No. If your super earnings are zero or negative for the year, no Division 296 tax applies. However, negative earnings can be carried forward to offset future Division 296 assessments.
Is super still worth it with Division 296?
For most people, yes. Even with the additional 15% tax, the total 30% rate on super earnings above $3M is still lower than the top marginal tax rate of 45% plus Medicare levy (47%). Super also offers tax-free income in retirement for those over 60.
Does Division 296 apply to all types of super funds?
Yes. Division 296 applies to all super fund types including retail funds, industry funds, SMSFs, and defined benefit funds. For defined benefit funds, special rules apply to calculate the notional earnings.
Can I reduce my Division 296 tax?
Strategies include withdrawing amounts to keep your balance near $3M (if eligible), splitting super with a spouse, or adjusting your investment mix. However, any strategy should be considered carefully with professional advice, as withdrawing from super may have other tax consequences.

Related guides

Seniors and Pensioners Tax Offset (SAPTO) Explained 2025-26How SAPTO works, who qualifies, the shade-out thresholds for 2025-26, and how it can effectively raise your tax-free threshold to over $33,000.

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Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2025-26

This calculator uses the Division 296 rules as legislated for the 2025-26 financial year. It does not account for defined benefit fund special rules, carried-forward negative earnings from prior years, or interaction with transition-to-retirement pensions.

Uses 2025-26 ATO rates.