From 1 July 2025, a new tax — known as Division 296 — applies an additional 15% tax on the portion of superannuation earnings that relate to balances above $3 million. This effectively raises the tax rate on those earnings from 15% to 30%. The tax applies to individuals, not funds, and is calculated on an individual member’s total super balance across all their funds.
For SMSF members, this is a significant planning consideration — particularly for those with illiquid assets like property or private equity inside the fund, as the tax must be paid regardless of whether those assets have been sold. Members can choose to pay the tax personally or have it debited from their super. Reviewing fund structure, asset mix, and contribution strategies before the threshold is reached is strongly recommended.