Australian Taxation Office outlines Division 296 requirements

The Australian Taxation Office (ATO) has outlined requirements for Self-managed superannuation funds (SMSFs) regarding the implementation of Division 296. Starting from the 2026–27 income year, funds must report the relevant super earnings of in-scope members in their annual returns.

This reporting is intended to identify members whose Total Superannuation Balance (TSB) exceeds the large super balance threshold of $3 million. Trustees may need to engage an actuary to calculate these earnings and have the option to make a Capital Gains Tax (CGT) adjustment election for assets held at the end of June 2026. The ATO expects to release draft public advice and guidance for consultation later in 2026 to assist funds with these upcoming changes.