December 1, 2025
New Superannuation Rules
The government has announced major refinements to the proposed Division 296 tax, confirming the measure will now apply solely to future realised earnings rather than unrealised gains. Under the revised Better Targeted Superannuation Concessions policy, the 30% concessional tax rate will continue to apply to earnings on super balances above $3 million, while a new $10 million threshold will attract a higher 40% tax rate. Both thresholds will be indexed to maintain alignment with the transfer balance cap. The updated framework will commence on 1 July 2026, with the first assessments expected in the 2028 financial year. Treasury will undertake further consultation on the calculation of realised earnings and the treatment of defined benefit interests, ensuring consistent application across fund types. According to Treasurer Jim Chalmers, the changes reflect two years of industry feedback while preserving the policy’s core objective of improving the fairness and sustainability of superannuation tax concessions.
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