The federal government has released the draft legislation relating to the revised Division 296 tax measure.
The Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2025 and the Superannuation (Better Targeted Superannuation Concessions) Imposition Bill 2025 contain the amended details of the proposed policy announced in October.
These include the introduction of a second threshold for individuals with a total super balance above $10 million with a headline rate of 40 per cent, the indexation of both the $3 million and $10 million thresholds, the move to a realised earnings approach that aligns with existing income tax concepts, a delayed start date of 1 July 2026 and the exclusion of capital gains accrued before this date.
The government has invited submissions regarding the draft legislation from industry stakeholders, which must be lodged before 16 January 2026.
