Div 296 Tax is Now Law: What It Means for Your Super
There’s been alot of talk about changes to super, and one of the biggest updates is now official.
The government has passed the Division 296 tax, which will start from 1 July 2026. While it mainly affects people with large super balances, it’s still important to understand what’s changing and why.
When this tax was first proposed back in 2023, it caused quite a stir. The original plan included:
» Taxing unrealised gains (basically, increases in value on paper that you haven’t actually received yet)
» A $3 million threshold that wasn’t going to increase over time
Understandably, many peoplewereconcernedthis wasn’t fair. After strong feedback, the governmenthasrevised the rules. The final legislated version alignsmore closely with how tax usually works, thatbeing, taxation of actual income not paper gains.
Payday Super Checklist for Employers: Steps to Stay Compliant
From 1 July 2026, employers must pay theiremployees’ superannuation guarantee (SG) contributions at the same time as salary or wages. This new system is known as payday super.
Currently, most employers pay super on a quarterly basis. From July 2026, super will instead need to be paid each pay cycle. The ATO has released a checklist to help employers prepare for this change. Below is a straightforward guide outlining what small businesses should be doing now to get ready.
If you’re an employee, this article explains what youremployer will need to do on your behalf from 1 July 2026. The aim of these changes is to ensure super is paid more frequently and reaches your super fund sooner.
Change to the Tax Treatment of Holiday Homes
No doubt noting the growing trend for people to rent out property for short-term accommodation, the ATO has withdrawn a 40-year old ruling and replaced it with a new draft Taxation Ruling accompanied by two draft Practical Compliance Guidelines that between them cover everything relating to renting out all or part of your property without carrying on a business, including income and deductions in a variety of circumstances.
Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
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