Division 296 Tax Calculator: How much will you pay?
Updated 14 October 2025
The proposed Better Targeted Superannuation Concessions Tax (BTSC Tax), commonly referred to as Division 296, is set to impact individuals with superannuation balances exceeding $3 million, including self-managed super funds (SMSFs).
The Ord Minnett Division 296 Tax Calculator helps you estimate your potential tax liability if the measure is legislated.
What is the new
Division 296 Tax?
Division 296 is a new tax set to be introduced by the Government. If it passes through parliament, it will apply to individuals with superannuation balances exceeding $3 million.
- Realised earnings attributable to the portion of your Total Superannuation Balance (TSB) between $3 million and $10 million will be taxed an additional 15%.
- Realised earnings attributable to the portion of your Total Superannuation Balance (TSB) over $10 million will be taxed an additional 25%.
- Division 296 hasn’t been legislated yet and is currently under government consultation.
Division 296 hasn’t been legislated yet and is currently under government consultation. If it successfully passes, the first assessment for Division 296 will be based on individual TSB’s at the end of the 2026/27 financial year.
Division 296 could impact your financial strategy. That's why it's important to understand exactly how the Division 296 tax applies in your situation.
Calculate how Division 296
will affect you
Want to see how much you stand to pay under Division 296? Enter your details into our calculator and find out.
How is Division 296 calculated?
The Division 296 tax is calculated based on the following:
Get the Division 296 Tax Quick Reference Guide
If you are looking for more information, you can download a complimentary copy of our Division 296 Tax Quick Reference Guide. It includes an overview of the legislation, key features, and important considerations.
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Division 296 Tax update:
What has changed?
Treasurer Jim Chalmers announced significant changes to the Federal Government’s $3 million superannuation tax reform under Division 296 on Monday 13 October 2025. Also known as the “Better Targeted Superannuation Concessions tax” or BTSC tax, the revised proposal saw several changes, including:
- Realised earnings basis: Tax will now apply only to realised earnings (e.g. dividends, interest, rent and realised gains), not unrealised capital gains.
- Indexation: Both thresholds will be indexed annually, reducing the risk of bracket creep.
- Start date: Implementation has been delayed to 1 July 2026, allowing time for further consultation and system readiness.
- Tiered tax rates introduced:
- Total tax rate of 40% tax on earnings from balances above $10 million.
- Total tax rate of 30% tax on earnings from balances between $3 million and $10 million.
Get expert advice to manage Division 296 changes
When changes like the Division 296 tax arise, it's important to get quality financial advice. That's where our team of private wealth advisers can help.
We have the knowledge and experience to provide guidance on legislative changes like Division 296. Our research teams and tax specialists work hand-in-hand to help grow your wealth.
Start a conversation with us today and take control of your personal wealth.
Division 296 Frequently Asked Questions
Basics & Definitions
Who does Division 296 affect?
Division 296 applies to individuals whose Total Superannuation Balance (TSB) exceeds $3 million at the end of the financial year. This includes balances held in self-managed super funds (SMSFs) and public funds. If you take money out before the end of the financial year and bring your balance below the threshold, the tax won’t apply. However, depending on your situation, you may subject to capital gains tax within the fund and taxed on withdrawing funds from your superannuation.
You should seek professional financial advice before making decisions.
What about defined benefit pensions?
If you have a defined benefit pension, its value, including any associated pension payments, may be counted towards your Super balance. Special rules apply, and any tax might be deferred in some cases. Further consultation will determine valuation and timing of tax for these interests.
What are realised earnings?
Realised earnings are income received by your fund, such as dividends, interest, rent, and realised capital gains. The government is consulting on the precise calculation method.
Has Division 296 been passed into law?
Realised earnings are income received by your fund, such as dividends, interest, rent, and realised capital gains. The government is consulting on the precise calculation method.
Liability & Timing
Should I take money out of my Super if my balance is over $3 million?
Not necessarily. Withdrawing could trigger other taxes, like capital gains tax (CGT), and may affect your financial situation. It’s important to get professional financial advice before making decisions.
When do I need to make my first tax payment?
The tax will first be due in the 2027/28 financial year after the ATO reviews superannuation realised income from the 2026/27 financial year. Once they have sufficient information to make an assessment, an assessment notice will be issued. If you are in a self-managed super fund (SMSF), the tax assessment will happen after your fund submits its return.
What if my Super balance goes down?
If your Super fund has negative growth (loses value), the loss can generally be carried forward and offset future earnings. This can help to reduce future tax payments.
Application & Scope
Are some people excluded from Division 296 tax?
Yes. For example, child pension recipients and people who have received structured settlement contributions won’t be taxed under Division 296. Some special funds are also treated differently.
Does Division 296 apply to self-managed Super funds?
Yes, Division 296 tax liabilities apply to SMSFs. Some differences may apply for SMSFs compared to public fund members due to variations in how the funds are set up. For example, public fund members may request money from their fund to cover this tax. SMSFs are entirely responsible for their own tax obligations. While there are a few differences to keep in mind, Division 296 tax liabilities are broadly similar for SMSFs and public fund members.
Will the $3 million and $10 million thresholds increase over time?
Yes, both the $3 million and $10 million super balance thresholds will be indexed by the Government. Indexation will be linked to the consumer price index with the $3 million threshold increasing in $150,000 increments while the $10 million threshold will increase in $500,000 increments.
Will my current superannuation balance be “grandfathered” for Division 296?
There has been no information provided by the Treasury or the Federal Government on when current superannuation balances will be grandfathered under the proposed policy. Treasury has said they will consult on the precise method for calculating and attributing realised earnings to in-scope members, including treatment of capital gains and CGT discount.
Tax Calculation &
Payment Options
How do I pay this tax?
The Australian Taxation Office (ATO) will send you an official assessment once it receives sufficient information from your Super fund. You can pay the tax personally or request funds to be released from your Super fund to pay the ATO. Payment will be due 84 days from the date of the assessment or 60 days if you elect to release funds from Super. Different rules will apply for defined benefit interests.
What counts as my Total Super Balance (TSB)?
All funds in your superannuation, pension and SMSF individual member accounts count at 30 June toward your Total Super Balance (TSB).
Some outstanding loan amounts linked to your Super, such as a Limited Recourse Borrowing Arrangement (LRBA) might not be included. Further consultation will determine valuation and timing of tax for these interests.
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Important Information
This webpage provides general information only and does not constitute financial, investment, or tax advice, and should not be relied on take make financial, investment or taxation decisions. The information is based on proposed legislation and current publicly available information as of May 2025, which may be subject to change. Individuals should seek professional advice tailored to their specific circumstances before making any decisions.
Important Information
This provides general information only and does not constitute financial, investment, or tax advice, and should not be relied on to make financial, investment or taxation decisions. The information is based on proposed legislation and current publicly available information as of October 2025, which may be subject to change. Individuals should seek professional advice tailored to their specific circumstances before making any decisions.
Important Information
This provides general information only and does not constitute financial, investment, or tax advice, and should not be relied on to make financial, investment or taxation decisions. The information is based on proposed legislation and current publicly available information as of October 2025, which may be subject to change. Individuals should seek professional advice tailored to their specific circumstances before making any decisions.
Important Information
This webpage provides general information only and does not constitute financial, investment, or tax advice, and should not be relied on to make financial, investment or taxation decisions. The information is based on proposed legislation and current publicly available information as of October 2025, which may be subject to change. Individuals should seek professional advice tailored to their specific circumstances before making any decisions.
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