Division 296
Last reviewed 13 June 2026 by Nick Lim, finance broker (FBAA).
Division 296 is an additional tax on the earnings attributable to superannuation balances above 3 million dollars, on top of the existing concessional rates. It is most relevant to high-balance members, including practice owners who hold property in an SMSF, because unrealised gains can be counted in the calculation. It can influence how clinicians structure their SMSF, property and broader tax planning.
Why Division 296 Matters
Division 296 changes the maths on holding large balances and property inside super, which matters for practice owners.
- Extra tax on earnings above a 3 million dollar balance
- Sits on top of normal concessional super tax
- Relevant to high-balance SMSF members
- Can count unrealised gains in the calculation
- Affects super and property structuring
Common Features of Division 296
- Targets large superannuation balances
- Applies above a 3 million dollar threshold
- Calculated on attributable earnings
- Interacts with SMSF property holdings
- A live area of tax planning
Official reference: ato.gov.au
What is Division 296?
An additional tax on the earnings attributable to super balances above 3 million dollars.
Who does Division 296 affect?
High-balance super members, including practice owners holding property in an SMSF.
Does Division 296 tax unrealised gains?
The calculation can include unrealised gains, which is a key planning concern.
How does it affect SMSF property?
It can change whether holding property in an SMSF is tax-effective for high-balance members.
Should I get advice on Division 296?
Yes, it is complex and balance-specific, so tax and financial advice is essential.