The Division 296 Tax Explained – Division 296 Fund Earnings, the TSBRA and Effective Division 296 Tax Rates from 1 July 2026

With the 1 July 2026 start date for the new Division 296 ITAA 1997 tax (“Div 296 tax”) on “Large or Very Large Balance Individuals” with a >$3 Million Total Super Balance Reference Amount (“TSBRA”) fast-approaching, most of the details underlying the application of this new tax have now been provided within Treasury’s 19 December 2025 Draft Legislation release (subject only to any potentially adjustments arising from the recently closed Treasury consultation process).

Our detailed Division 296 Tax Guide and online recordings explain the operation of the new s.296-55 ITAA 1997 Division 296 Fund Earnings concept (and the affected individual’s share of it).  We’ve also explained the (optional) new Super Fund Div 296 CGT Election for small super funds and the newly defined TSBRA concept together with updates to our (largely unchanged) October 2025 Div 296 Effective Tax Rate explanations and tables to enhance understanding of the real/effective rate of Div 296 tax likely to be payable by affected individuals in 2026/27 and beyond.

Click here to read our detailed summary of the Division 296 Draft Legislation as at January 2026 (this PDF summary includes links to our explanatory online videos).