Today, the Treasurer, Dr Jim Chalmers, has announced a raft of amendments to the proposed Division 296 tax,  taking into consideration the significant industry and public concerns, since the original proposal was first announced.

Key Amendments

• Delaying the start date to having balances assessed at 30 June 2026, this was previously 30 June 2025.
• Removing the controversial taxation of unrealised gains.
• Indexation of the $3m cap.
• Introducing a new level of tax of 40% on balances above $10m (assume this applies same way the 30% on balances above $3m works).
• Measures to ensure defined benefit pensions receive similar treatment to other types of superannuation pensions.

There has also been an announcement in relation to increasing the low-income superannuation tax offset from $500 to $810, and increasing the eligibility threshold from $37,000 to $45,000.

As this has only just been announced, we are waiting for further details, but we will keep you updated as they come to hand.

Contact Us

Should you have any questions in relation to this, or any other superannuation matter, please don’t hesitate to contact Daniel Shaw, Director and SMSF Specialist.