After an uninspiring Federal Election that has produced a Labour majority in the House of Representatives, we can be sure that the Division 296 tax is back on the Agenda. Of more importance is the composition of the Senate. As a simple majority is required to pass legislation, 39 votes are all that is required in the 76-seat Senate. The latest results[1] show it is likely that the Senate will be controlled by the Labour party (28) with support from the Greens (11).
If passed, the proposed Better Targeted Super Concessions legislation may come into effect from 1 July 2025. So, what does this mean? Based on the proposed legislation, the tax calculates the difference in your adjusted total super balance at 30 June 2026 (year end) for members with more than $3mil at 1 July 2025. This means that we should have the 2025/2026 year to consider the ramifications for your individual circumstances.
I have written extensively about the Division 296 tax over the last 2 years, and my advice is not to make any hard decisions until we have final legislation. For now, you need to understand how the tax works and then consider its application for you and your family. Here are some fast facts (based on the current proposal):
If you are interested in how this may impact you, please contact our Ulton Wealth Management team to discuss your individual circumstances and plan with confidence.
[1] Senate Results from the 2025 Federal Election - ABC News