It is a one hour, one on one consultation with a Findex Wealth specialist, delivered for a fixed fee invoiced on delivery of your report. We model Division 296 exposure based on the details provided, walk through the Division 296 rules and what applies to your position, and give you a written report to keep. The assessment provides factual information only, not personal financial advice. There is no obligation to take things further, though you can choose to move to a full financial advice engagement with Findex if you want to act on what you learn.

Not yet. The additional 15% tax applies to the portion of earnings tied to a total super balance above $3 million. The threshold is assessed per individual, across all super held, so things worth checking include: multiple super accounts that quietly add up across a person's working life, defined benefit pensions that carry a higher notional value than people expect, and how balances are split between partners. If a balance is approaching the threshold, or likely to grow into it, planning before 1 July 2026 can still change the outcome. The cost base election is available to any SMSF, including funds where no member is currently above $3 million. Furthermore, you may want to consider how Division 296 affects estate plans.

SMSF trustees can elect to reset the cost base of all CGT assets to their 30 June 2026 market value, but only for the Div 296 earnings calculation. The original cost base for ordinary CGT is unchanged. The election is all or nothing across the fund. It is irrevocable. It applies to assets in a loss position as well as gains, so the right answer depends on an asset-by-asset analysis of the fund's specific circumstances

Selling assets to fund a withdrawal can trigger CGT, stamp duty and the permanent loss of concessional tax treatment on those earnings. For some clients, the cost of getting out is greater than the Div 296 tax over a reasonable time horizon. Modelling your situation with the guidance of a professional advisor is the best way to know which side of that line you sit on.

Your defined benefit pension carries a notional value that counts toward your total super balance for Div 296 purposes. That valuation can be significantly higher than people expect. The earnings from CSS and PSS interests themselves are excluded from Div 296 because those schemes are Constitutionally Protected Funds. If you hold other super alongside your defined benefit pension, the other balances are still in scope.

Div 296 is a personal tax. On death, any outstanding liability becomes a debt of your estate so estate planning is an important consideration in planning conversations. Earnings can continue to accrue inside the fund until final death benefits are paid out, which can mean the final tax position is not known at the time of death. Auto-reversionary pension arrangements can push a surviving partner over the threshold immediately. Death benefit nominations, reversionary structures and wills are all relevant considerations. Speak with a qualified advisor about your specific circumstances.

The most common couples trap we see is an auto-reversionary pension that transfers a deceased partner balance straight to the survivor, pushing them over the threshold overnight. A Binding Death Benefit Nomination preserves choice. Both documents are relevant if you are in this position. Speak with a qualified advisor about your specific circumstances.

The $3 million threshold applies the same way. The CGT cost base election is only available to SMSFs. APRA-regulated funds get a phased modified gain factor instead, which reduces the proportion of capital gains included in your Div 296 earnings over the first few years of the regime. Your fund will apply this automatically.

No. Moving to pension phase reduces the tax your fund pays on earnings through the Exempt Current Pension Income rules. It does not reduce your total super balance, and it does not reduce your Div 296 liability. The two calculations are separate.