Division 296 Tax Explained

Division 296 Tax Explained. Breaking down Division 296 tax ifa The Division 296 tax is only payable if, among other factors, your Total Superannuation Balance (TSB) at the end of the year is greater than the large superannuation balance threshold, i.e., $3 million From 1 July 2025, the Government has proposed a new tax on those who have a total superannuation balance (TSB) of greater than $3 million

The Division 296 tax was originally announced in the lead-up to, and as part of, the government's federal budget 2023-24 On Friday, 10 May 2024, the Senate Economics Legislation Committee recommended the Bill containing the measure to impose an additional tax on balances above $3 million (Div 296 tax, proposed new s 296‑35(1)(a) of the Income Tax Assessment Act 1997 (Cth) (ITAA)) proceed with no changes.The key features of the Div 296 tax

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A critical part of the change is to alter the definition of "total superannuation balance" for everyone - even those with less than $3m. As of the latest updates, the Division 296 Bill has passed the House of Representatives without amendments, reflecting the government's strong push to. From 1 July 2025, the Government has proposed an 'additional' tax of 15% on earnings on an individual's total superannuation balance (TSB) over $3 million at the end of a financial year.

ADVISER CONFERENCE 2024 The impact of the 3 million cap (Div 296 tax) Cooper Grace Ward. From 1 July 2025, the Government has proposed a new tax on those who have a total superannuation balance (TSB) of greater than $3 million The Division 296 tax was originally announced in the lead-up to, and as part of, the government's federal budget 2023-24

How to multiply your client's Division 296 tax by 15 DBA Global Shared Services, Inc. posted. The new tax is called Division 296 (Div 296) and the. Investment bonds are a tax-paid structure and can help you achieve your medium and long-term goals, whether that's looking to reduce the impact of the proposed.