How to use the Division 296 calculator
- 1 Enter your total super balance at 30 June 2027 across all funds.
- 2 Enter your realised super earnings for 2026-27.
- 3 Read the share of your balance above each threshold.
- 4 See the Division 296 tax and the effective extra rate.
Worked example
A total super balance of $4.5 million on 30 June 2027 and $150,000 of realised earnings. The share above $3 million is 33.33%, so 15% × 33.33% × $150,000 = $7,500 of Division 296 tax, an extra 5% on the earnings. With $11.5 million and $500,000 of earnings, the tax is $55,435 + $6,522 = $61,957.
Planning for Division 296
- Check all super balances across every fund.
- Plan any withdrawals before 30 June 2027.
- Consider a spouse's balance for contribution splitting.
- Get advice before selling assets in an SMSF.
Track balances with the Super Balance Calculator, plan pensions with the Account-Based Pension Calculator, and check the Division 293 Calculator.
Features
Final law
Uses the rules passed in March 2026: realised earnings and indexed thresholds.
Two tiers
15% on the share above $3 million and 10% more above $10 million.
Effective rate
Shows the extra tax as a share of your earnings.
When to use it
SMSF members
Estimate the bill before the 30 June 2027 test date. Track balances with the Super Balance Calculator.
Planning withdrawals
See the effect of taking money out before 30 June 2027.
Couples
Each person is assessed on their own balance.
Retirees
Compare with account-based pension withdrawals in the Account-Based Pension Calculator.
Related Tax tasks
Frequently asked questions
What is Division 296 tax?
An extra personal tax on super earnings for people with a total super balance above $3 million, often called the $3 million super tax. It became law on 13 March 2026 and starts on 1 July 2026.
How much is the tax?
An extra 15% on the share of earnings relating to the balance above $3 million, so a total of about 30% with the fund's normal 15%, and a further 10% on the share above $10 million, about 40% in total.
How is the share worked out?
For a $4.5 million balance, ($4.5m − $3m) ÷ $4.5m = 33.33% of earnings is taxed at the extra 15%. Above $10 million, the share above $10 million is taxed at a further 10%.
Does it tax unrealised gains?
No. The final law taxes realised earnings, not unrealised capital gains, after the government changed the original proposal. Gains accrued before 1 July 2026 are excluded.
Which balance is used?
For 2026-27 only the total super balance at 30 June 2027. From 2027-28, the higher of the balance at the start and end of the year.
Are the thresholds indexed?
Yes. The $3 million threshold is indexed in $150,000 steps and the $10 million threshold in $500,000 steps.
Who pays the tax?
The individual. The ATO sends an assessment, and you can pay it personally or release money from super to pay it.
When will the first assessments arrive?
In the 2027-28 financial year, after funds report earnings for 2026-27.
Is this financial advice?
No. It is an estimate. Speak to a licensed adviser about your super strategy.
Does Division 296 apply to my spouse's super?
No. It is worked out for each person on their own total super balance. A couple with $2.5 million each pays no Division 296 tax, even though they have $5 million combined.
What counts as realised earnings?
Broadly, the taxable income of the fund attributed to you, such as interest, dividends, rent and capital gains on assets actually sold, with adjustments set out in the law. Funds will report the figure to the ATO.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
· Last updated
· How we check our tools
· Report a problem