Project update
Initial web content providing new Division 296 tax content and updated total superannuation balance information is expected to be available when the law commences. public advice and guidance will be published later with further content, including guidance relevant for super funds.
Workshop outcomes
The group met on 13–14 April 2026 to discuss the challenges and considerations of the new law. As a result of the workshop the following items were updated:
- The timelines for when the ATO will request the Division 296 tax information from Australian Prudential Regulation Authority (APRA) regulated funds for in scope members via Online services for business have been refined.
- The 2026–27 income year is the first year in which Division 296 tax will be applied and funds will need to report their in-scope members' relevant super earnings to the ATO.
- For defined benefit interests not in retirement phase and other prescribed interests that will use a prescribed formula based on the change in the total super balance value of the member's interest to calculate the member's relevant super earnings, we will start issuing requests for Division 296 information in November 2027. These funds will have 10 business days to respond.
- All other APRA-regulated funds can expect to start receiving requests for Division 296 information in April 2028 and will have 28 calendar days to respond.
- Requests for information for subsequent years will follow a similar pattern.
- Self-managed super funds (SMSFs) will report their in-scope members relevant super earnings through the self-managed super fund annual return (SAR) from the 2026–27 financial year onwards. In addition, a new label will be included in the SAR from the 2026–27 financial year onwards for SMSFs to report their Division 296 fund earnings.
Technical discussion
During the workshop, various topics were discussed to understand industry’s considerations and challenges including:
- structured settlement contributions
- child income stream reporting data
- deceased individuals’ Division 296 tax assessments
- successor fund transfers
- SMSF annual return follow up processes.