Estimate your Division 296 tax on super earnings for a total super balance over $3,000,000, using the ATO's method.
Key facts
- Division 296 tax applies from 1 July 2026 to people whose total super balance is over $3,000,000 (the large super balance threshold). It's law.
- It's an extra 15% tax on the share of your super earnings that matches the share of your balance over $3,000,000, plus a further 10% on the share over $10,000,000.
- For 2026–27 only your balance on 30 June 2027 counts; from 2027–28 it's the greater of your balance at the start and the end of the year.
- Your super funds work out and report your earnings; the ATO assesses the tax, which you can pay yourself or release from super.
- Example (ATO): a $4,000,000 balance with $100,000 of earnings means 25% of the earnings are taxable, so $3,750.00 of Division 296 tax.
How it's worked out
- Balance used: your total super balance on 30 June 2027 for 2026–27; from 2027–28 the greater of the balance at the start and end of the year. No tax if it's $3,000,000 or less, or your earnings are nil or negative.
- Share over $3,000,000 = (balance − $3,000,000) ÷ balance, as a percentage rounded to 2 decimal places. Taxable super earnings = your super earnings × that share.
- If the balance is over $10,000,000, work out the share over $10,000,000 the same way.
- Tax = 15% × taxable super earnings + 10% × earnings × the share over $10,000,000.
ATO examples
| Example | Balance used | Super earnings | Division 296 tax |
|---|---|---|---|
| Jordan | $4,000,000 | $100,000.00 | $3,750.00 |
| Andrew | $3,900,000 | $227,000.00 | $7,858.74 |
| Kelly | $12,000,000 | $500,000.00 | $64,585.00 |
Division 296 tax by balance and earnings (2026–27)
| Balance on 30 June | Earnings $100,000 | Earnings $200,000 | Earnings $400,000 |
|---|---|---|---|
| $3,500,000 | $2,143.50 | $4,287.00 | $8,574.00 |
| $4,000,000 | $3,750.00 | $7,500.00 | $15,000.00 |
| $5,000,000 | $6,000.00 | $12,000.00 | $24,000.00 |
| $7,500,000 | $9,000.00 | $18,000.00 | $36,000.00 |
| $10,000,000 | $10,500.00 | $21,000.00 | $42,000.00 |
| $15,000,000 | $15,333.00 | $30,666.00 | $61,332.00 |
Limited recourse borrowing amounts are excluded from the balance. Defined benefit interests use a different earnings formula.
Common questions
What is Division 296 tax?
An extra tax on the earnings of large super balances: 15% on the earnings linked to the part of your total super balance over $3,000,000, and another 10% on the part over $10,000,000. It started on 1 July 2026.
Is Division 296 tax law?
Yes. It applies from the 2026–27 income year, and funds report members' super earnings for that year onwards.
How is the proportion worked out?
(Balance − $3,000,000) ÷ balance × 100, rounded to 2 decimal places. On $3,500,000 that's 14.29%, so 14.29% of your super earnings are taxed at 15%.
Are the thresholds indexed?
Yes, the $3,000,000 and $10,000,000 thresholds are indexed. This calculator uses $3,000,000 and $10,000,000, as in the ATO's examples.
What if I die during the year?
If you die in 2026–27 you're never liable for Division 296 tax. In later years, earnings until your death benefits are paid can be assessed if your balance was over the threshold at the start of the year.
See also super rates and thresholds, the Division 293 calculator and the super calculator.
Sources: ATO how Division 296 tax is calculated, Division 296 tax and the latest for SMSFs. Checked 22 October 2026. An estimate, not tax advice.