Division 296 Tax Calculator$3 Million Super Tax — 2026–27 Australia
If your total super balance exceeds $3 million, Division 296 imposes an extra 15% tax on realised earnings — rising to 25% for balances over $10 million. Use this free calculator to estimate your liability and understand the two-tier structure.
Essential for SMSF trustees, high-balance members, and advisers planning for the first year of Division 296 from 1 July 2026.
SMSF Trustees
Understand how Division 296 applies to your fund and whether to opt in to the CGT cost base reset.
High-Balance Members
Balances over $3 million across all funds — accumulation and pension combined — are caught.
Pension Phase
Even though fund earnings on pensions are tax-free, they're included in Division 296 calculations.
Division 296 Tax Calculator
Your total super balance across all funds (accumulation + pension accounts combined).
Your share of fund investment income: dividends (incl. franking credits), interest, rent, and realised capital gains, less deductible expenses. Does not include unrealised gains.
Understanding Division 296 Tax
What is Division 296 Tax?
Division 296 is a new personal tax on individuals whose total super balance exceeds $3 million. It applies from 1 July 2026 and is calculated on realised fund earnings — not unrealised gains.
Two Tiers: 15% on earnings attributable to balances between $3m and $10m, plus an additional 10% for balances over $10m.
Who is Affected?
Anyone with more than $3 million in total super across all funds — including SMSFs, industry funds, and retail funds. Pension phase balances count too.
How the Tax is Calculated
Division 296 tax uses proportions to determine how much of your fund earnings are taxed. The reference TSB (your total super balance at the relevant date) determines the proportions over $3m and $10m.
Realised Earnings Include:
- • Dividends (including franking credits)
- • Interest and rent
- • Trust distributions
- • Realised capital gains (after 1/3 CGT discount)
- • Less deductible investment expenses
Payment Options:
- • Pay personally within 84 days of assessment
- • Elect to release from super (within 60 days)
- • Available even if you can't normally access super
- • Defined benefit members can defer payment
Total Effective Tax Rates
Division 296 tax sits on top of any existing fund-level tax. The total effective rate depends on whether your super is in accumulation or pension phase.
Accumulation Phase
$3m–$10m tier: 30% (15% fund + 15% Div 296)
Over $10m tier: 40% (15% fund + 15% + 10% Div 296)
Pension Phase
$3m–$10m tier: 15% (0% fund + 15% Div 296)
Over $10m tier: 25% (0% fund + 15% + 10% Div 296)
Frequently Asked Questions About Division 296 Tax
Common questions about the $3 million threshold, realised earnings, payment options, and how Division 296 is calculated
Official ATO Information
For official rules, thresholds, and eligibility criteria, refer to the Australian Taxation Office.
View ATO Division 296 (Better Targeted Super Concessions) InformationRelated Articles
Division 293 Tax Explained
How the additional 15% tax on concessional contributions works for high-income earners.
How to Reduce Division 293 Tax
Strategies for managing Division 293 exposure — relevant context for high-balance members.
Catch-Up Concessional Contributions
Understanding carry-forward unused concessional caps and how they interact with super tax.
Recontribution Strategy Explained
How withdrawing and re-contributing super can optimise tax-free components for beneficiaries.
General Information Only
This calculator provides general information only and does not constitute personal financial advice. Results are estimates based on the inputs provided and current ATO rates. Your actual tax obligations may differ. Please consult a licensed financial adviser before making any financial decisions.
Now you know the tax. The question is whether your super structure is ready for it.
Division 296 is here from 1 July 2026. Whether it's timing withdrawals, restructuring between accumulation and pension, or resetting cost bases — the right moves now could save you significantly.
Book Your Free Discovery Call
Meet Alan O'Reilly — a licensed financial adviser who works with high-balance super members to navigate Division 296 and keep more of what they've built.