I’ve had several requests for a Division 296 tax calculator to help accountants estimate tax liabilities for their clients, so... here it is.
The proposed Division 296 superannuation tax appears increasingly likely to be introduced.
Simply enter your client's figures to calculate the tax payable (based on pre-2025 election draft legislation).
>> Click here to access the Division 296 Tax Calculator
How Division 296 Tax is Calculated
- Calculate Div 296 Earnings: this is derived from the movement in the individual's Total Super Balance, adjusted by removing both CC and NCC contributions and adding back withdrawals (including pension payments).
- Determine the Taxable Portion: calculated as the (TSB at end of FY minus the $3m large balance threshold) ÷ (TSB at end of FY). This percentage represents the proportion of earnings attributable to the balance exceeding $3 million.
- Apply the Tax: tax payable is 15% of the calculated Earnings multiplied by the taxable portion.
Simple...
Individual Assessment for SMSFs
For clients with SMSFs, it's important to remember that each member’s balance is assessed individually for the purposes of Division 296 tax, even though it's a single fund. This means the $3 million threshold applies per member and included balance of other superfund interests they may have.
Note there is no refund for negative earnings: if TSB falls or negative earnings occur in a subsequent year, no refund is available for prior Division 296 tax paid. However, losses can be carried forward to offset future earnings.
>> Click here to access the Division 296 Tax Calculator
If you have any queries, TriSuper Auditors are here to help – whether or not you are a client. Contact Joel Curry on 1300 874 787 or audits@trisuperauditors.com.au