After three years of debate, drafts and a fair bit of noise, the $3 million super tax is now law. Division 296 received Royal Assent on 13 March 2026 and commences on 1 July 2026. For clients with larger super balances, the time for watching and waiting is over.

Here is what the final legislation does. From 1 July, an additional 15% tax applies to the proportion of super earnings attributable to a total super balance above $3 million, with a higher 25% rate on the portion above $10 million. After the backlash to the original proposal, the final law taxes realised earnings only, not unrealised paper gains, and both thresholds will now be indexed to inflation. Treasury estimates around 80,000 Australians currently sit above the $3 million line.

The detail many overlook is timing. The tax commences on 1 July, but the first balance test is at 30 June 2027, with assessments arriving after that. So these final days before 1 July are not about panic. They are about getting the groundwork right.

One action matters now. SMSF members can elect to reset the cost base of fund assets to market value at 30 June 2026, quarantining pre-commencement gains from Division 296. It is an all-or-nothing, irrevocable election that needs proper valuations, so the date is real. Beyond that, the planning that holds up, evening out balances between spouses, rethinking the timing of large asset sales and revisiting estate structures, needs a runway. None of it is an overnight job.

Heffron reports advisers fielding tons of questions, with many clients asking whether they should simply withdraw funds. Sometimes that makes sense. Often it does not, and money pulled out of super can be hard or impossible to put back. This is exactly the moment where a calm, considered decision beats a reactive one.

For Newealth clients, the message is steady. If your total super balance is approaching or above $3 million, the bigger work is the disciplined, properly modelled planning that follows, not a rushed reaction this week. We can help you understand your real exposure, weigh the cost and consequences of any action before you take it, and coordinate with your accountant where needed. It may be a good time to review your superannuation and retirement strategies in light of the new rules.

At Newealth, we guide clients through change like this with clarity and discipline rather than noise. For a review of your financial plan, please contact us.

General Advice Warning:

The information in this blog is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for you and seek professional advice before making any financial decisions. Newealth Pty Ltd ABN 61 091 100 275 | AFSL 231297