Albanese's revamped Division 296 super tax takes effect 1 July 2026
After dropping the contested unrealised-gains design, Labor lands an extra 15% over A$3m and 25% over A$10m, indexed
Summary
Anthony Albanese and Treasurer Jim Chalmers's revamped Division 296 superannuation tax takes effect 1 July 2026. After Labor scrapped the contested taxing of unrealised gains and added indexation plus a second threshold, the measure applies an extra 15% on earnings attributable to super balances between A$3m and A$10m, and an extra 25% above A$10m, on a realised-earnings basis. Chalmers introduced the imposition bill on 11 February 2026 and it has passed both houses; first assessments cover FY2026–27, with first payments due from 1 July 2027. The redesign followed sustained attack on the original unrealised-gains approach.
By the numbers
- +15% — extra tax on earnings for balances A$3m–A$10m.
- +25% — extra tax on earnings above A$10m.
- 1 Jul 2026 — commencement; first payments from 1 Jul 2027.
Why it matters
Superannuation is the core of Australian retirement savings, and taxing large balances is a revenue and equity test for Labor's second term. Dropping the unrealised-gains design defused the sharpest criticism but conceded ground; the precedent of taxing high balances will shape the broader tax-reform debate.
What to watch
- Implementation detail and any further carve-outs before assessments begin.
- Behavioural shifts by holders of large balances.
- Whether it opens a wider tax-reform agenda or further retreat.