As discussed here, the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 (the Div 296 Bill), which was first introduced to Parliament on 30 November 2023, seeks to impose a new Division 296 tax of an additional 15% on members with a $3 million or more total super balance (not indexed).

Broadly, a member’s total super balance is calculated as the ‘withdrawal benefit’, which is the total amount of superannuation benefits that would be payable if an individual withdrew all of their benefits at that time. This means that the proposed measure would tax unrealised gains.

The Div 296 Bill has been subject to criticism by industry, in particular due to:

the number of farming properties held in SMSFs that can’t be easily disposed of/partially disposed of to reduce a member’s total super balance; and
the taxation of unrealised capital gains.

The Div 296 Bill has struggled to progress through the Senate. It was again rescheduled for debate to 13 February 2025, as the last bill on the last day of the current parliamentary sitting period, where it was not passed.

The Div 296 Bill is now unlikely to be put to the Senate before an election and is expected to become a key election issue.

Phil Broderick
Principal
T +61 3 9611 0163 l M +61 419 512 801
E pbroderick@sladen.com.au

Philippa Briglia
Special Counsel
T +61 3 9611 0174 | M +61 449 404 801
E: pbriglia@sladen.com.au