Federal Treasurer announces changes to people with superannuation balance over $3 million

On 13 October 2025, the Federal Government announced a redesigned Division 296 measure for large super balances.

These changes mean that from 1 July 2026:

• The total concessional tax rate applied to earnings on balances between $3 million and $10 million will be 30 per cent.
• The total concessional tax rate applied to earnings on balances over $10 million will be 40 per cent.
• Both the $3 million and $10 million super balance thresholds will be indexed to maintain relativity with the Transfer Balance Cap that was introduced by the Coalition.

The Federal Government has also made changes so that Unrealised Gains are no longer taxed under Division 296.

The earnings calculation will only now apply to future realised gains.

The Government will consult with stakeholders on how to best approach the calculation of future realised gains and attribution to individuals with large superannuation balances.

Article posted  30/10/2025