Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026 (8 of 2026)
Schedule 1 Better targeted superannuation concessions
Taxation Administration Act 1953
75 After Division 133 in Schedule 1
Insert:
Division 134 - Division 296 tax
Table of Subdivisions
Guide to Division 134
134-A Deferral determination
134-B Division 296 debt account
134-C Compulsory payment
Guide to Division 134
134-1 What this Division is about
Payment of Division 296 tax is deferred to the extent to which the tax is attributable to defined benefit interests from which no superannuation benefit has yet become payable.
This reflects the fact that money generally cannot be released from defined benefit interests until a superannuation benefit is paid, usually upon retirement.
Subdivision 1 34-A - Deferral determination
Guide to Subdivision 134-A
134-5 What this Subdivision is about
The Commissioner determines the amount of your tax that is deferred to a Division 296 debt account by working out the extent to which your assessed tax is attributable to defined benefit interests.
Table of sections
Operative provisions
134-10 Determination of tax that is deferred to a Division 296 debt account
134-15 Your defined benefit Division 296 tax
134-20 Determination reducing tax deferred to a Division 296 debt account
134-25 General provisions applying to determinations under this Subdivision
Operative provisions
134-10 Determination of tax that is deferred to a Division 296 debt account
(1) The Commissioner must make a determination specifying the amount the Commissioner has ascertained as being the extent to which your *assessed Division 296 tax for an income year is attributable to a *superannuation interest that is or includes a *defined benefit interest.
Note 1: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.
Note 2: For general provisions, including review, see section 134-25.
(2) The amount of *assessed Division 296 tax specified in the determination is deferred to a Division 296 debt account for the *superannuation interest.
(3) However, the Commissioner must not make a determination under this section in relation to a *superannuation interest if, at the time the determination is to be made, the *Division 296 end benefit for the superannuation interest has become payable.
Note: For Division 296 end benefit , see section 134-130.
(4) Subsection (1) does not apply if the Commissioner ascertains that no part of your *assessed Division 296 tax for an income year is *Division 296 tax attributable to a *superannuation interest that is or includes a *defined benefit interest.
134-15 Attribution of Division 296 tax to defined benefit interest
(1) For the purposes of section 134-10, the amount of your *assessed Division 296 tax for an income year attributable to a *superannuation interest that is or includes a *defined benefit interest is to be worked out using the following formula:
(2) However, no part of the *assessed Division 296 tax for the year is attributable to the *superannuation interest if:
(a) your *relevant superannuation earnings for the year for the superannuation interest is nil; or
(b) the superannuation interest is in a *superannuation plan that is a *foreign superannuation fund for the income year; or
(c) the superannuation interest is a *Division 296 excluded interest in relation to the year.
134-20 Determination reducing tax deferred to a Division 296 debt account
(1) If an amount of *assessed Division 296 tax that is *deferred to a Division 296 debt account for a *superannuation interest is reduced as a result of an amended assessment, the Commissioner must make a determination under this section in respect of the reduced amount.
(2) The amount so determined is a Division 296 deferral reversal for the *superannuation interest.
Note: For variation and revocation, see subsection 33(3) of the Acts Interpretation Act 1901.
134-25 General provisions applying to determinations under this Subdivision
(1) The Commissioner must:
(a) make a determination as soon as practicable after:
(i) for a determination under section 134-10 - assessing the amount (whether by way of a first assessment or an amended assessment); or
(ii) for a determination under section 134-20 - amending the assessment; and
(b) give you notice in writing of the determination as soon as practicable after making it.
(2) The validity of the determination is not affected because any of the provisions of this Act have not been complied with.
Review
(3) If you are dissatisfied with a determination made under this Subdivision in relation to you, you may object against the determination in the manner set out in Part IVC.
(4) If you are dissatisfied with a decision of the Commissioner not to make a determination under this Subdivision:
(a) you may object against the decision in the manner set out in Part IVC; and
(b) for the purpose of working out the period within which the objection must be lodged, notice of the decision is taken to have been served on you on the day notice is given to you of:
(i) for a determination under section 134-10 - the assessment of the amount; or
(ii) for a determination under section 134-20 - the amended assessment.
Note: For the period within which objections must be lodged, see section 14ZW.
Subdivision 1 34-B - Division 296 debt account
Guide to Subdivision 134-B
134-55 What this Subdivision is about
The Commissioner keeps Division 296 debt accounts for Division 296 tax that is deferred to a Division 296 debt account for a superannuation interest.
You can make voluntary payments of the Division 296 debt account.
Table of sections
Operative provisions
134-60 Division 296 debt account to be kept for deferred Division 296 tax
134-65 Interest on Division 296 debt account balance
134-70 Voluntary payments
134-75 Commissioner must notify superannuation provider of Division 296 debt account
Operative provisions
134-60 Division 296 debt account to be kept for deferred Division 296 tax
Accounts to be kept
(1) The Commissioner is to keep a debt account (a Division 296 debt account ) for *Division 296 tax for you for a *superannuation interest, if an amount of your *assessed Division 296 tax is *deferred to a Division 296 debt account for the superannuation interest.
Account to be debited for Division 296 tax
(2) The Commissioner must debit the *Division 296 debt account for the amount of *assessed Division 296 tax that is *deferred to a Division 296 debt account for the *superannuation interest.
134-65 Interest on Division 296 debt account balance
Interest to be debited at end of financial year
(1) If a *Division 296 debt account for a *superannuation interest is in debit at the end of a *financial year, the Commissioner is to debit the account for interest on the amount by which the account is in debit, calculated at the *long term bond rate for that financial year.
Note: Interest would not be debited to a Division 296 debt account that is no longer being kept by the Commissioner because the assessed Division 296 tax liability being tracked in the account has been finally discharged as mentioned in subsection 134-105(3).
Remission of interest - Division 296 deferral reversal
(2) The Commissioner may remit the whole or any part of an amount of interest debited, or to be debited, to a *Division 296 debt account under subsection (1) if:
(a) the Division 296 debt account is credited:
(i) under section 134-70 because of a *Division 296 deferral reversal; or
(ii) because a determination under section 134-10 is varied or revoked; and
(b) the Commissioner is satisfied that, because of that credit, it would be fair and reasonable to do so.
Remission of interest - special circumstances
(3) The Commissioner may remit the whole or any part of an amount of interest debited, or to be debited, to a *Division 296 debt account under subsection (1) if the Commissioner is satisfied that, because special circumstances exist, it would be fair and reasonable to do so.
134-70 Voluntary payments
(1) You may make payments to the Commissioner for the purpose of reducing the amount by which a *Division 296 debt account for a *superannuation interest is in debit.
(2) The Commissioner is to:
(a) acknowledge receipt of the payment to you; and
(b) credit the payment to the *Division 296 debt account; and
(c) notify you of the revised balance of the Division 296 debt account.
The credit mentioned in paragraph (b) is to be made when the payment is received.
(3) The amount of a *Division 296 deferral reversal for the *superannuation interest is to be treated as if it were a voluntary payment under this section in relation to the *Division 296 debt account for that interest. However, paragraphs (2)(a) and (c) do not apply in relation to that amount.
134-75 Commissioner must notify superannuation provider of Division 296 debt account
If the Commissioner starts to keep a *Division 296 debt account for you for a *superannuation interest, the Commissioner must give the *superannuation provider in relation to the superannuation interest a notice saying so.
Subdivision 1 34-C - Compulsory payment
Guide to Subdivision 134-C
134-100 What this Subdivision is about
The deferred Division 296 tax liability must be paid when a superannuation benefit becomes payable from the superannuation interest.
Table of sections
Division 296 debt account discharge liability
134-105 Liability to pay Division 296 debt account discharge liability
134-110 When Division 296 debt account discharge liability must be paid
134-115 General interest charge
134-120 Meaning of Division 296 debt account discharge liability
134-125 Notice of Division 296 debt account discharge liability
Division 296 end benefit
134-130 Meaning of Division 296 end benefit
134-135 Superannuation provider may request Division 296 debt account status
134-140 Division 296 end benefit notice - superannuation provider
134-145 Division 296 end benefit notice - material changes or omissions
Division 296 debt account discharge liability
134-105 Liability to pay Division 296 debt account discharge liability
(1) You are liable to pay the amount of your *Division 296 debt account discharge liability for a *superannuation interest if the *Division 296 end benefit for the interest becomes payable.
(2) The liability arises:
(a) unless paragraph (b) applies - at the time the *Division 296 end benefit becomes payable; or
(b) if the Division 296 end benefit is a *superannuation death benefit - just before you die.
Note 1: For paragraph (a), a release authority allows money to be released from the superannuation plan to pay this amount: see subsection 135-10(1).
Note 2: For paragraph (b), the debt will be recovered from your estate: see Subdivision 260-E.
(3) Payment of your *Division 296 debt account discharge liability for a *superannuation interest discharges your liability for so much of your total *assessed Division 296 tax for all income years as is *deferred to a Division 296 debt account for the superannuation interest.
134-110 When Division 296 debt account discharge liability must be paid
The amount of your *Division 296 debt account discharge liability for a *superannuation interest is due and payable at the end of 21 days after the day on which the *Division 296 end benefit for the superannuation interest is paid.
134-115 General interest charge
If your *Division 296 debt account discharge liability remains unpaid after the time by which it is due and payable, you are liable to pay the *general interest charge on the unpaid amount for each day in the period that:
(a) begins on the day on which the Division 296 debt account discharge liability was due to be paid; and
(b) ends on the last day on which, at the end of the day, any of the following remains unpaid:
(i) the Division 296 debt account discharge liability;
(ii) general interest charge on any of the Division 296 debt account discharge liability.
Note: The general interest charge is worked out under Part IIA. For the rate of general interest charge payable, see subsection 8AAC(3).
134-120 Meaning of Division 296 debt account discharge liability
The Division 296 debt account discharge liability for a *superannuation interest for which the Commissioner keeps a *Division 296 debt account is the amount by which the Division 296 debt account is in debit at the time the *Division 296 end benefit for the superannuation interest becomes payable.
134-125 Notice of Division 296 debt account discharge liability
(1) The Commissioner must give you a notice under this section if the *Division 296 end benefit becomes payable from a *superannuation interest for which the Commissioner keeps a *Division 296 debt account.
(2) The notice must state that you are liable to pay your *Division 296 debt account discharge liability for the *superannuation interest and specify:
(a) the amount of that debt; and
(b) the day on which that debt is due and payable.
(3) If you are dissatisfied with a notice given under this section in relation to you, you may object against it in the manner set out in Part IVC of this Act.
(4) However, you cannot object against a notice stating that the amount you are liable to pay is the amount by which the *Division 296 debt account is in debit.
Division 296 end benefit
134-130 Meaning of Division 296 end benefit
(1) A *superannuation benefit is the Division 296 end benefit for a *superannuation interest if it is the first superannuation benefit to become payable from the interest, disregarding a benefit that is any of the following:
(a) a *roll-over superannuation benefit paid to a *complying superannuation plan that is a *successor fund;
(b) a *family law superannuation payment;
(c) a benefit that becomes payable under the condition of release specified in item 105 of the table in Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994 (about severe financial hardship);
(d) a benefit that becomes payable under the condition of release specified in item 107 of that table (about compassionate ground);
(e) a benefit specified in an instrument under subsection (2).
(2) The Minister may, by legislative instrument, specify a *superannuation benefit for the purposes of paragraph (1)(e).
134-135 Superannuation provider may request Division 296 debt account status
(1) If:
(a) a *superannuation provider has been given a notice under section 134-75 saying that the Commissioner has started to keep a *Division 296 debt account for a *superannuation interest; and
(b) the superannuation provider receives a request to pay the *Division 296 end benefit from the superannuation interest or the Division 296 end benefit becomes payable from the superannuation interest;
the superannuation provider may, in the *approved form, request the Commissioner to advise as to the status of the Division 296 debt account.
(2) If the Commissioner receives a request, the Commissioner must advise the *superannuation provider as soon as practicablewhether or not the *Division 296 debt account is in debit.
134-140 Division 296 end benefit notice - superannuation provider
(1) If the *Division 296 end benefit becomes payable from a *superannuation interest for which the Commissioner keeps a *Division 296 debt account, the *superannuation provider in relation to the interest must give the Commissioner a notice stating the expected date of payment of the benefit.
Note: If a person is dissatisfied with a notice given to the Commissioner under this subsection, the person may make a complaint under the AFCA scheme (within the meaning of the Corporations Act 2001).
(2) The notice must be given within 14 days after the earlier of:
(a) the *superannuation provider receiving a request (if any) to pay the *superannuation benefit; and
(b) the superannuation benefit becoming payable.
(3) However, this section does not apply if the *superannuation provider has not been given a notice under section 134-75 saying that the Commissioner has started to keep a *Division 296 debt account for the *superannuation interest.
(4) A notice under this section must be given in the *approved form.
134-145 Division 296 end benefit notice - material changes or omissions
(1) If an entity that gives the Commissioner a notice under section 134-140 becomes aware of a material change or material omission in any information given to the Commissioner in the notice, the entity must:
(a) tell the Commissioner of the change in the *approved form; or
(b) give the omitted information to the Commissioner in the approved form.
(2) Information required by this section must be given no later than 7 days after the entity becomes aware of the change or omission.