§ Rules · Income Tax Assessment Act 1997 (Cth) Division 296 (Act No. C2026A00008)
Division 296 splits realised earnings across two tiers by balance
Worked example: A $15m total super balance with $900,000 of realised earnings
| Total super balance at 30 June | $15,000,000 |
| Realised earnings for the year | $900,000 |
| Tier 1 slice of balance ($3m to $10m) | $7,000,000 |
| Tier 1 attributed earnings ($900k × 7/15) | $420,000 |
| Tier 1 additional tax at 15% | $63,000 |
| Tier 2 slice of balance (above $10m) | $5,000,000 |
| Tier 2 attributed earnings ($900k × 5/15) | $300,000 |
| Tier 2 additional tax at 25% | $75,000 |
| Total Division 296 tax | $138,000 |
Both thresholds are indexed from commencement ($3m in $150k steps, $10m in $500k steps); these are the commencement-year values.
Division 296 commenced 1 July 2026. It applies additional tax to realised earnings only (unrealised gains are not taxed under the final law), proportioned to how much of the total super balance sits between $3m and $10m (15%) and above $10m (a further 10%, 25% cumulative).
How the rule counts
- 01Attribution is proportional: earnings × (slice of balance ÷ total balance) for each tier.
- 02Tier 1 covers the balance between $3m and $10m at 15%; tier 2 covers the balance above $10m at 25% cumulative.
- 03The base is realised earnings under ordinary tax principles; the 2023 unrealised-gains design was not enacted.
- 04Assessment is per individual across all their super interests, not per fund.
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