Technically Speaking: Unpacking the $3 Million Super Tax

How much do you really know about the new $3 Million super tax?

While much of the focus has been on the complexity associated with the introduction of a new tax on superannuation earnings for those with large superannuation balances, with the Government recently introducing the Treasury Laws Amendment (Better targeted superannuation concessions and other measures) Bill 2023 into parliament, the time has come to start developing a deeper understanding of the mechanics that will underpin this new tax, should it become law.

It is broadly accepted that this new tax, to be affectionately known as Division 296 tax, will impact on those with super balances exceeding $3,000,000. However, in this bulletin we go beyond the headlines and unpack some of the key features of this proposed new tax in an attempt to uncover how this new tax is likely to impact your clients.

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The contents of this resource are taken to be correct at the time of publication.

Disclaimer: Technical Papers contain factual information only and are prepared without considering particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. The information contained in this document does not constitute advice given by the SMSF Association to you. If you rely on this information yourself or to provide advice to other persons, then you do so at your own risk. The SMSF Association is not licensed to provide financial product advice, legal advice or taxation advice. We recommend that you seek appropriate professional advice before relying upon the information in this technical paper. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this paper is not considered financial advice for the purposes of the Corporations Act 2001. © SMSF Association