--- title: "Division 296 tax: what high-balance super members need to do now" description: Prepare for Division 296 tax changes impacting superannuation balances over $3 million. Learn how to adapt your wealth strategy effectively. image: https://www.altusfinancial.com.au/hubfs/Division%20296%20Tax.png --- [![Logo](https://www.altusfinancial.com.au/hubfs/Logo.svg "Logo")](https://www.altusfinancial.com.au/) - [![](https://www.altusfinancial.com.au/hubfs/1.%202017%20Assets/Dark_Phone.svg)](tel:+61289083444) [![Talk with us](https://no-cache.hubspot.com/cta/default/512115/6a87cb2e-17ae-43a1-93c7-da9582e08c36.png)](https://cta-redirect.hubspot.com/cta/redirect/512115/6a87cb2e-17ae-43a1-93c7-da9582e08c36) ##### Accounting & Business Services ##### Wealth Services ##### Lending Sources ##### [Need Real-life Advice?](https://www.altusfinancial.com.au/request-a-consultation) [![Talk with us](https://no-cache.hubspot.com/cta/default/512115/6a87cb2e-17ae-43a1-93c7-da9582e08c36.png)](https://cta-redirect.hubspot.com/cta/redirect/512115/6a87cb2e-17ae-43a1-93c7-da9582e08c36) [![page-1 (5)](https://www.altusfinancial.com.au/hubfs/page-1%20(5).svg "page-1 (5)")](https://www.altusfinancial.com.au) - ![](https://www.altusfinancial.com.au/hubfs/Assets%20Jan%202019/Images/group-14%20(1).svg)![](https://www.altusfinancial.com.au/hubfs/Assets%20Jan%202019/Images/group-17%20(1).svg) - ##### MENU - [![](https://www.altusfinancial.com.au/hubfs/Assets%20Jan%202019/Images/phone-call%20(6).svg)![](https://www.altusfinancial.com.au/hubfs/Assets%20Jan%202019/Images/phone-call-2.svg)](tel:1300832962) - ##### MENU [![Talk With Us](https://no-cache.hubspot.com/cta/default/512115/11099956-4246-4311-83f2-64fc6560f370.png)](https://cta-redirect.hubspot.com/cta/redirect/512115/11099956-4246-4311-83f2-64fc6560f370) - [![](https://www.altusfinancial.com.au/hubfs/Assets%20Jan%202019/Images/phone-call-2%20(1).svg)](tel:+61%202%208908%203444) - ![](https://www.altusfinancial.com.au/hubfs/close.svg) CLOSE - [Instagram](https://www.instagram.com/altus_financial/) - [LinkedIn](https://www.linkedin.com/company/2339369/admin/) - [Facebook](https://www.facebook.com/AltusFinancial/) - [Business (242)](https://www.altusfinancial.com.au/blog/topic/business) - [Strategy (150)](https://www.altusfinancial.com.au/blog/topic/strategy) - [Wealth (142)](https://www.altusfinancial.com.au/blog/topic/wealth) - [Super (56)](https://www.altusfinancial.com.au/blog/topic/super) - [CFO (48)](https://www.altusfinancial.com.au/blog/topic/cfo) - [Growth (38)](https://www.altusfinancial.com.au/blog/topic/growth) - [Business Succession (25)](https://www.altusfinancial.com.au/blog/topic/business-succession) [![Helpful Resources](https://no-cache.hubspot.com/cta/default/512115/11b7293b-309b-4f1b-af85-27ec1dd19a35.png)](https://cta-redirect.hubspot.com/cta/redirect/512115/11b7293b-309b-4f1b-af85-27ec1dd19a35) Request a Consultation - Close![](https://www.altusfinancial.com.au/hubfs/Assets%20Jan%202019/Images/close%20(3).svg) ## Request a Consultation - [Wealth](https://www.altusfinancial.com.au/blog/topic/wealth) - [Super](https://www.altusfinancial.com.au/blog/topic/super) - [Tax](https://www.altusfinancial.com.au/blog/topic/tax) # [Division 296 tax: what high-balance super members need to do now](https://www.altusfinancial.com.au/blog/division-296-tax-what-high-balance-super-members-need-to-do-now) From 1 July 2026, Division 296 will introduce additional tax on superannuation balances above $3 million. For many Australians, this will be a marginal change. For high-balance super members, it’s something more significant — a shift that could reshape how sup..... ###### Altus Team #### Latest Posts [Wealth](https://www.altusfinancial.com.au/blog/topic/wealth), [Super](https://www.altusfinancial.com.au/blog/topic/super), [Tax](https://www.altusfinancial.com.au/blog/topic/tax) ##### [Division 296 tax: what high-balance super members need to do now](https://www.altusfinancial.com.au/blog/division-296-tax-what-high-balance-super-members-need-to-do-now) [Business](https://www.altusfinancial.com.au/blog/topic/business), [FBT](https://www.altusfinancial.com.au/blog/topic/fbt), [Accounting](https://www.altusfinancial.com.au/blog/topic/accounting) ##### [Common FBT Questions and Answers](https://www.altusfinancial.com.au/blog/common-fbt-questions-and-answers) [Super](https://www.altusfinancial.com.au/blog/topic/super), [Business](https://www.altusfinancial.com.au/blog/topic/business) ##### [Pay Day Super Is Coming: What SMEs Should Be Doing Now](https://www.altusfinancial.com.au/blog/pay-day-super-is-coming-what-smes-should-be-doing-now) [Lending](https://www.altusfinancial.com.au/blog/topic/lending) ##### [Supporting the Next Generation into Property](https://www.altusfinancial.com.au/blog/supporting-the-next-generation-into-property) [Wealth](https://www.altusfinancial.com.au/blog/topic/wealth), [Budget](https://www.altusfinancial.com.au/blog/topic/budget), [Risk](https://www.altusfinancial.com.au/blog/topic/risk) ##### [Rising Insurance Premiums: What’s Really Going On, and What You Can Do About It](https://www.altusfinancial.com.au/blog/rising-insurance-premiums) [Wealth](https://www.altusfinancial.com.au/blog/topic/wealth), [Super](https://www.altusfinancial.com.au/blog/topic/super), [Tax](https://www.altusfinancial.com.au/blog/topic/tax) - 9 min read ## [Division 296 tax: what high-balance super members need to do now](https://www.altusfinancial.com.au/blog/division-296-tax-what-high-balance-super-members-need-to-do-now) ###### Altus Team - SHARE: - [**](http://www.linkedin.com/shareArticle?mini=true&url=https://www.altusfinancial.com.au/blog/division-296-tax-what-high-balance-super-members-need-to-do-now) - [**](https://www.twitter.com/share?url=https%3A%2F%2Fwww.altusfinancial.com.au%2Fblog%2Fdivision-296-tax-what-high-balance-super-members-need-to-do-now) - [**](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.altusfinancial.com.au%2Fblog%2Fdivision-296-tax-what-high-balance-super-members-need-to-do-now) From 1 July 2026, Division 296 will introduce additional tax on superannuation balances above $3 million. For many Australians, this will be a marginal change. For high-balance super members, it’s something more significant — a shift that could reshape how super fits within a broader wealth strategy. The key question is no longer just *“what tax will I pay?”* It’s **“is my current strategy still the right one?”**   ## **What is Division 296?** Division 296 applies an additional tax on earnings linked to the portion of a member’s super balance above $3 million. In practical terms: - Earnings above the $3M threshold may be taxed at up to **30%** - For balances above $10M, this may increase to **40%** While super remains a concessional environment, the gap between super and alternative structures is narrowing for higher balances.   ## **Why this change matters** Division 296 is not just a tax increase — it introduces a new layer of strategic complexity. For affected clients, it influences: - how wealth compounds over time - when and how assets are sold - how tax liabilities are funded - whether assets remain best held inside super In short, it changes the long-term economics of super for larger balances.   ## **The impact may build over time** One of the most overlooked aspects of Division 296 is how it compounds. As super balances grow, more earnings fall above the $3 million threshold. That means what may appear manageable initially can become more material over time — particularly for clients with strong-performing or concentrated portfolios. A first-year view is not enough. **This is a long-term**** ****modelling**** ****exercise****.**   ## **Should you withdraw funds from super?** It’s the most common question - and often the wrong starting point. While reducing balances may lower exposure to Division 296, the path to get there matters. Selling assets to fund withdrawals can: - trigger capital gains within the fund - increase taxable earnings in that year - potentially increase Division 296 liabilities in the short term In some cases, a staged or alternative strategy produces a better outcome. The focus should not be on avoiding tax in isolation — but on achieving the best overall result across your total wealth position.   ## **Liquidity is now a critical consideration** Division 296 liabilities may be paid from super funds. For portfolios with sufficient liquidity, this is manageable. For SMSFs holding: - direct property - business premises - unlisted or illiquid assets …it introduces real complexity. Without adequate liquidity, trustees may be forced to sell assets at suboptimal times — impacting both returns and long-term strategy. **Liquidity planning** **is now a core part of super strategy.**   ## **The CGT reset opportunity - valuable, but not automatic** A key transitional measure allows SMSFs to reset the cost base of assets to market value at 30 June 2026 (for Division 296 purposes). This can be highly beneficial for funds with significant unrealised gains. But it is not universally advantageous. The decision depends on: - unrealised gains or losses - expected timing of asset sales - future balance projections - overall tax position Critically, this is a time-sensitive opportunity. Preparation — including valuations — needs to happen well in advance.   ## **The bigger strategic question** Division 296 is not just about super. It’s about **where and how wealth should be held going forward**. For many clients, this is the moment to revisit: - the role of super in their long-term plan - alternative ownership structures - investment allocation across environments - access to capital and liquidity - estate and intergenerational planning There is no single “right” answer — only the right answer for your situation.   ## **Why acting early matters** The best outcomes won’t come from reacting in 2026. They will come from: - early modelling - considered scenario planning - structured decision-making Many of the most important decisions — including the CGT reset and liquidity preparation — require time. Delaying the conversation reduces flexibility.   ## **How Altus can help** At Altus Financial, we work with clients to translate complex changes into clear, practical strategies. Our approach includes: - modelling projected Division 296 impact over time - testing withdrawal and retention strategies - assessing liquidity requirements - evaluating the CGT reset decision - aligning super strategy with broader wealth and estate planning For clients with balances above, or approaching, $3 million, this is not a future issue. It’s a **now** **decision**.   ## **Take the next step** Division 296 represents a permanent shift in the super landscape. Some clients will stay the course. Others will adapt. The difference comes down to planning early. **Speak with your Altus adviser to understand what this means for you.** ### **Could Your Business Benefit from an Outsourced CFO?** Set your business on the right path with this simple guide. 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