Important Update: New Tax on Super Balances Over $3 Million from July 2025

From 1 July 2025, the Federal Government will introduce a new tax that may affect individuals with high-value superannuation balances. Known as Division 296, this measure introduces an additional 15% tax on earnings related to super balances above $3 million.

This change is designed to apply to a relatively small segment of the population and will not impact existing super tax rates for balances under the $3 million threshold.

What’s Changing?

• A 15% tax will apply to the earnings on the portion of a superannuation balance that exceeds $3 million.
  
  

• This is in addition to current superannuation tax arrangements.
  
  

• The earnings will be calculated using a specific formula, which includes unrealised capital gains.
  
  

• The new tax applies only to superannuation—personal investments, companies, or trusts are not affected.
  
  

Key Details

• The threshold is based on the Total Superannuation Balance as at 30 June each year.
  
  

• The tax applies only to the earnings portion that relates to the amount over the $3 million cap.
  
  

• It is expected to affect approximately 80,000 Australians.
  
  

• The first notices of assessment will be issued in the 2026–27 financial year.
  
  

What Should Investors Do?

For those whose super balances may exceed $3 million in the coming years, this change is a prompt to review your current structure and long-term strategy. While not everyone will be impacted, those who are may benefit from forward planning to manage the potential tax implications.

Our team at One Agency Elite Property Group is here to assist. We encourage our clients and landlords to seek tailored financial advice and welcome you to reach out if you’d like to better understand how this may impact your position.