Tax & government Australia
Division 296 Tax Calculator
From 1 July 2026, an extra tax applies to the share of super earnings that relate to a total super balance above $3 million, with a further tax above $10 million. Enter your balance and your total super earnings for the year to see the estimated Division 296 tax.
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For 2026-27 the transitional rule looks only at your balance at the end of the year.
The relevant earnings your fund reports to the ATO, not including excluded earnings.
Division 296 tax
—Share of the balance above $3 million
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Taxable super earnings
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Tax at 15%
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Extra tax above $10 million
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Tax as a share of earnings
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The working
Working with a different rate? Edit the rates this calculator uses
These are the figures we verified on 2026-10-26. Change them to work with a historic period, or with a new rate that has been announced but which we have not published yet.
ATO, 2026-27; indexed to CPI
ATO, 2026-27; indexed to CPI
ATO
ATO
An estimate, not an assessment. An estimate using the ATO's published method. Your fund works out your relevant super earnings and reports them to the ATO, defined benefit and other special interests use different rules, and the thresholds are indexed. Get advice from a tax agent or financial adviser.
How is Division 296 tax calculated?
Work out the proportion of your balance above $3 million, apply it to your total super earnings, and charge 15% on that share. A balance of $4,000,000 has 25% above the threshold, so $100,000 of earnings gives $25,000 of taxable earnings and $3,750 of tax. Above $10 million a further 10% applies to the share above that level.
Who is affected
Only people with a total super balance above $3 million at the relevant time are affected, which is a small share of members. The tax is on the earnings attributed to the part above the threshold, so it rises with the balance and with how well the fund performs. A very large balance above $10 million pays the extra 10% on the share above that level.
Planning points
Because the test is on your total super balance across all funds, splitting money between funds does not avoid it. Options include keeping the balance under the threshold, taking money out as a lump sum or a pension where the rules allow, or contributing to a spouse's account. These have tax and legal consequences, so get advice before you act.
For tax on contributions, use the Division 293 tax calculator.
How this is calculated
The rule, step by step, so you can check any figure by hand.
proportion above the large threshold = (total super balance − $3,000,000) ÷ total super balance, rounded to 2 decimal places of a percenttaxable super earnings = total super earnings × that proportionDivision 296 tax = 15% × taxable super earningsproportion above the very large threshold = (total super balance − $10,000,000) ÷ total super balancefurther tax = 10% × total super earnings × that proportion
The tax applies only to the earnings that relate to the part of the balance above the threshold, not to your whole balance and not to your contributions. A balance of $4 million has a quarter above $3 million, so a quarter of the year's earnings are taxed an extra 15%, which brings that slice to a 30% rate in the fund.
For 2026-27 there is a transitional rule: only your balance at 30 June 2027 is tested, and if you die during that year you are not liable. In later years the test is your balance at the start or the end of the year. Your super fund calculates your relevant earnings and reports them, and the ATO assesses the tax and sends you a notice. The thresholds are indexed to CPI.
A worked example
A total super balance of $4,000,000 and super earnings of $100,000.
- Proportion above $3 million25%
- Taxable super earnings$25,000
- Tax at 15%$3,750
- With a $12 million balance and $600,000 of earnings$77,502 in total
- Balance of $3 million or lessNo Division 296 tax
$3,750 of Division 296 tax.
This matches the ATO's worked example.
Paying the tax
The ATO issues a Division 296 assessment after the end of the income year. You can pay it yourself or ask your super fund to release money to pay. A release authority lets the fund pay directly from your account.
What it leaves out
Defined benefit interests, deaths during the year, transitional income-year rules after 2026-27 and the way your fund attributes earnings are not modelled. Your fund reports the actual figure.
What this calculator does not do
- 2026-27 transitional rule
- Earnings are your input
- Defined benefit and special interests not modelled
- An estimate, not an assessment
Common questions
What is the large super balance threshold?
$3 million for 2026-27, indexed to CPI.
What is the very large threshold?
$10 million for 2026-27.
Is the tax on my whole balance?
No, only on the earnings related to the part above the threshold.
Who works out my earnings?
Your super fund reports them to the ATO.
When does it start?
1 July 2026, and it is law.
Where these numbers come from
- ATO — better targeted superannuation concessions The law from 1 July 2026, the thresholds and the 15% and 10% rates
- ATO — how Division 296 tax is calculated Total super balance, taxable super earnings and the transitional rule for 2026-27
Rates last verified 2026-10-26 Every figure Australian Taxation Office sets is re-checked against the source at least once a year, and again whenever a change is announced. Out of date? Tell us and we will fix it.
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