Division 296 Start Date: What Happens From 1 July 2026?
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Primary tax-year context: Current Australian tax settings
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General information only. This is not tax or financial advice. Consult a registered tax agent for advice specific to your situation.
Status: exposure draft (not law yet)
Treasury has published exposure draft bills for the Better Targeted Superannuation Concessions measures. The consultation material proposes that the new Division 296 rules would start on 1 July 2026.
The consultation window opened 18 December 2025 and closed 16 January 2026. That means the design can still change before a final Bill is introduced and passed.
What the consultation says about the proposed design
The consultation hub summarises the current proposal, including:
- A new Division 296 tax for individuals with total super balances above $3 million.
- An additional $10 million threshold with a headline rate of 40% on earnings above that threshold.
- Indexing of the thresholds in line with the transfer balance cap approach.
- A move to realised earnings aligned with income tax concepts.
- Excluding capital gains accrued before the start date.
- A commensurate approach for defined benefit interests.
Why the 1 July 2026 start date matters
If you are likely to cross the $3 million threshold, the proposed start date becomes the key planning anchor for liquidity, valuations, and documentation before the first assessment year.
What to monitor next
- The final Bill and Explanatory Memorandum once introduced.
- Any changes to thresholds, valuation rules, or transitional measures.
- ATO guidance (rulings or practical compliance guidance) once the law is enacted.