Div 296 Tax Calculator

Overview

​If passed, the tax will begin in the 2025/2026 financial year. It would apply to any member whose total super balance is over $3m as 30 June 2026 and apply to a portion of the fund “earnings” for that year. (Unlike other measures where the trigger is the previous year’s TSB, for this tax, the trigger is at the end of the year that will be taxed).

The process is as follows.

Calculate the Div 296 Earnings

Earnings = TSB at end of the financial year – the greater of TSB at start of the financial year or $3m.

Adjust it by removing after tax contributions and adding back withdrawals including pension payments.

Calculate the Taxable Portion

(TSB at end of FY) – $3m (large balance threshold)} ÷ (TSB at end of FY)

Apply the Tax

Tax is 15% of Earnings x Taxable Portion