After a long journey from when the Federal Government first announced this measure in early 2023, the Government’s ‘Building a Stronger and Fairer Super System’ measure - commonly called Division 296 tax - has completed its parliamentary passage, received Royal Assent on 13 March 2026 and will commence on 1 July 2026. For SMSF trustees and practitioners this change is significant: it alters how certain superannuation earnings will be taxed and triggers a number of practical compliance and planning issues you should address before the measure starts.

Today Treasury released the draft regulations supporting the Building a Stronger and Fairer Super System Act 2026, the legislation that gives effect to the Division 296 tax, with submissions due by 7 April 2026. For advisers and accountants with clients approaching or above the $3 million total superannuation balance threshold, this is an important development, and one that we have been closely tracking.