Division 296 Tax Calculator
Calculate additional tax on super balances over $3 million (from 1 July 2025)
What is Division 296 Tax?
From 1 July 2025, an additional 15% tax applies to earnings on superannuation balances exceeding $3 million. This brings the total tax rate to 30% on earnings relating to the portion of your balance above $3 million. The tax is calculated proportionally based on how much of your total super balance exceeds the threshold.
Calculate Your Division 296 Tax
Enter your superannuation details below
Division 296 Tax Calculation
How This Was Calculated
Step 1: Determine balance above $3M threshold
Step 2: Calculate total earnings = Closing - Opening - Contributions + Withdrawals
Step 3: Calculate proportion above threshold = Excess / Total Balance
Step 4: Calculate taxable earnings = Total Earnings × Proportion
Step 5: Calculate tax = Taxable Earnings × 15%
Important Notes
- • This calculator provides estimates only and should not be considered financial or tax advice
- • Division 296 tax applies from the 2025-26 financial year (1 July 2025)
- • The $3 million threshold is not indexed and applies per individual
- • Tax is assessed based on your total superannuation balance across all accounts
- • You can choose to pay the tax from your super balance or from personal funds
- • Different rules may apply for defined benefit interests
- • Always consult with a qualified tax professional or financial adviser for personalized advice
Frequently Asked Questions
When does Division 296 tax start?
Division 296 tax applies from 1 July 2025 (2025-26 financial year). The first tax bills will be issued in late 2026 for the 2025-26 financial year.
How is the $3 million threshold determined?
The threshold is based on your Total Superannuation Balance (TSB) as at 30 June each year. This includes all your super accounts in accumulation and retirement phase, but not account-based pensions in some cases. The $3 million threshold is not indexed for inflation.
Can I pay Division 296 tax from outside super?
Yes, you can choose to pay Division 296 tax from personal funds outside of superannuation, or you can have it paid from your super balance. Paying from outside super preserves your retirement savings but requires sufficient cash flow.
What strategies can reduce Division 296 tax?
Strategies may include: withdrawing funds to bring your balance below $3M, making contributions to a spouse's super, recontribution strategies, reviewing your investment strategy, or using pension accounts strategically. Always seek professional advice as these strategies have complex tax and legal implications.