Super Alert: Div 296 – new threshold announced

Article

Published: October 13, 2025 |

There is, at last, some good news on the $3 million soft-cap on superannuation (Div 296 tax). Recent changes to the bill have been announced, including:

The start date has been delayed by 12 months to 1 July 2026
Unrealised gains will no longer be taxed - the cap will only apply to realised capital gains
The $3 million threshold will be indexed.

More additions to the bill

The government has announced it will introduce a new threshold, $10 million superannuation balances. Those that hold super above this threshold will be taxed at 40 per cent. The $10 million threshold will also be indexed.

While the finer details of the legislation are yet to be finalised, BDO is closely monitoring developments and will continue to deliver timely, strategic updates as new information emerges.

For now, the pressure is off for action by self-managed superannuation fund (SMSF) trustees. We continue to recommend clients hold off making any decisions until further guidance is available and they are in a position to make informed choices. Should you like to discuss the bill further in the context of your personal situation, please contact your BDO adviser for more detailed information.

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