Super Concessions Bill 2026: What Changed Since the Draft
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Primary tax-year context: Current Australian tax settings
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On 11 February 2026, the Government introduced the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2026.
This is the first formal legislation after Treasury’s late-2025 exposure draft process. If you follow Division 296 and related super reform proposals, this bill matters because several design settings were revised before introduction.
What changed from the draft
According to Treasury’s 5 February 2026 announcement, the introduced package includes the following major changes:
- The first threshold is proposed to reduce from $3 million to $2 million.
- A second threshold is proposed to reduce from $10 million to $5 million.
- Thresholds are proposed to be indexed in line with transfer balance cap indexation.
- The model shifts from taxing unrealised earnings to taxing realised earnings for the additional tax.
- Capital gains accrued before 1 July 2025 are proposed to be excluded (a grandfathering mechanism for pre-start gains).
Start date to watch
Treasury states the measure is intended to start from 1 July 2027.
That means the policy path is now:
- consultation draft (late 2025)
- bill introduced (11 February 2026)
- parliamentary process still to complete before becoming law
What this means in practice
If you are likely to be above the proposed thresholds in coming years, the practical planning issues are now more about:
- liquidity for potential future liabilities
- timing of asset realisations
- record-keeping for cost base and pre-1 July 2025 gain components
- checking the impact alongside other super caps and retirement-phase rules
Even with an introduced bill, the final law can still change during parliamentary debate.
Why this update is significant
The policy direction did not disappear after consultation; it moved forward into Parliament with material revisions. That lowers policy uncertainty compared with a draft-only stage, but does not remove legislative risk until passage.
What to monitor next
- House and Senate progress of the bill
- any amendments to thresholds, transitional rules, or earnings methodology
- final enacted wording and ATO implementation guidance