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.
In short: The Div 296 actuarial requirements are now taking shape with the first assessment against the large and very large TSB thresholds to be made on 30 June 2027. Trustees and their advisers have time to prepare, and actuaries are well placed to make the new actuarial certificate and defined benefit pension valuation requirements, where applicable, as streamlined as possible for trustees and their advisers.
What the Draft Regulations Confirm for SMSFs
While much of the regulatory detail focuses on defined benefit interests and APRA-regulated funds, one provision stands out clearly for SMSFs: for funds with more than one member, the amount of Division 296 fund earnings attributable to each superannuation interest must be determined by reference to an actuary’s certificate.
The attribution formula set out in the regulations is based on each member’s average total superannuation balance value relative to the average sum across all interests in the fund. This is broadly consistent with the fair and reasonable approach that underpins actuarial work in the SMSF space today but with a few new complexities around total superannuation balance calculations.
The regulations confirm the actuary’s certificate requires the Division 296 earnings which in turn depends on the fund’s taxable income and ECPI claim being finalised for an income year. This will be a new certificate requirement for SMSF trustees, however it is pleasing to see that the regulations recognise not all SMSFs will require an actuary’s certificate, citing that SMSFs with no Division 296 earnings or where the fund only has a single member will not be required to obtain an actuary’s certificate.
Plenty of Time… But Planning Starts Now
It is worth noting that the first Division 296 actuarial certificates will not be required until after the 2026–27 fund tax returns have been lodged and the ATO has assessed which members may be captured under Division 296. There is no need for trustees or advisers to panic about these new requirements but there is every reason to start understanding the implications for the fund.
For SMSF trustees approaching the $3 million threshold, the key actions to work through with clients in the lead-up to 1 July 2026 and during the 2026-27 year could include reviewing unrealised gains and the merits of the cost base reset election, assessing how superannuation balances are distributed between spouses, and considering whether the current structure of assets held in super remains appropriate. For trustees with defined benefit pensions in their SMSF, there are also new total superannuation balance valuation rules to consider, and you should not forget the 5-year legacy pension exit measure.
Accurium Is Leading the Way
Accurium is actively engaged at every level of the Division 296 implementation process. I am currently chairing the SMSF sub-committee of the Actuaries Institute and we will be working to complete a submission on the draft regulations ahead of the 7 April deadline.
We will work closely with the major SMSF platforms to ensure that, when the time comes, the new Div 296 actuarial certification process integrates as smoothly as possible into existing workflows for accountants and administrators.
Our actuarial team will also be working to implement an efficient process to assist trustees with defined benefit pensions to value their pensions for total superannuation balance purposes.
Our goal is simple: to make the compliance burden for affected trustees and their advisers as light as possible, while ensuring the actuarial work meets the standard the regulations require.
Want to Know More?
If you’d like a comprehensive walkthrough of how Division 296 works, who it affects, how earnings are calculated, what the transitional year opportunities look like, and what additional obligations SMSF practitioners can expect then join us for our upcoming webinar:
Div 296 2.0 – A Whole New Ball Game Presented by Mark Ellem, Head of SMSF Education, Accurium
The Accurium team will continue to publish updates as the regulations are finalised and as we work through the implementation of Division 296. Watch this space.