Division 296 tax on large total super balances applies from 1 July 2026. Here’s what super funds need to know.
You'll need to report Division 296 relevant super earnings for members that are in scope for Division 296 tax. We'll send you a request for information (RFI) via Online Services for Business for your in-scope members, and they will have 28 calendar days to respond.
For the 2026-27 income year:
Defined benefit interests that are not in retirement phase, and other super interests that are not based on any sort of balance, can expect to receive Division 296 RFIs from November 2027.
All other funds (excluding SMSFs) can expect to receive Division 296 RFIs from April 2028
The RFI electronic reporting specification will be open for consultation shortly. Review the specification and have your say.
Funds that are going through a successor fund transfer (SFT) will be required to report their prospective in-scope members Division 296 relevant earnings to us prior to them winding up.
Once we've been notified of the SFT, a Division 296 RFI for your prospective in-scope members will be sent to you via Kiteworks
The transferring fund will need to report this information back to us prior to the fund winding up. If this is before November 2027, they'll do it via Kiteworks. After this date, they'll do it via Online Services for Business
Reporting total super balance values
For 30 June 2026 you'll report member account balances as usual and where the account balance is different to the phase value amount, you'll report that value/s as well.
For 30 June 2027 defined benefit interests and income streams not supported by an account balance will be valued by a method as prescribed by the regulations. We'll no longer use the transfer balance account to determine the TSB value of those interests. You'll report the phase value amount/s as well as the account balance for your members if they are different.
- The MATS BIG for the 2025-26 income year will be published shortly.
We expect to publish draft public advice and guidance for consultation later in 2026 to help funds understand and prepare for the changes.
As well as our main Division 296 web content, we also have specific information for APRA funds and TSBs.
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