Episode 98 - Concerns with the new Div 296 tax laws

Описание: In this episode of Feeling Smarter (Episode 98), Aaron Dunn and Tim Miller dive deep into the newly released exposure draft for the Division 296 tax rules, which was published by Treasury just before Christmas last year. With the submission period having recently closed on Friday, 16 January 2026, Aaron and Tim explore the significant concerns raised by the industry regarding the workability and fairness of these proposed measures.

Key Discussion Points from this week's show include:

The "Integrity Measure" for TSB Measurement:
A controversial shift where an individual’s Total Superannuation Balance (TSB) will be measured as the higher of the balance at the start of the year or the end of the year. This "cheeky" adjustment by Treasury ensures that those who withdraw funds mid-year to drop below the threshold are still captured, but it also creates unintended consequences for those experiencing legitimate market spikes or losses.

The Impact of Death and Estates:
Under the new draft, the previous exclusion for death appears to have been removed, effectively creating what some call a "death tax". Aaron and Tim discuss how liabilities may now shift to estates and beneficiaries even after assets have been distributed, potentially leaving those who did not benefit from the super money to foot the tax bill.

Actuarial Requirements for Earnings Attribution:
The draft suggests a move toward an "accounting science-based" approach where SMSFs may be required to obtain an actuary’s certificate to attribute fund earnings to each member. This adds a layer of administrative complexity and cost that industry experts find unnecessary, particularly for single-member funds.

The Flawed Cost Base Reset:
While a transitional CGT adjustment is available as of 30 June 2026 to exclude pre-commencement gains, the "all-or-nothing" nature of this election is a major sticking point. Aaron & Tim looking back in time to discuss potentially how the Government could look to deal with this issue in a better way.

Note: The new Division 296 rules are proposed to commence on 1 July 2026, with the first measurement and assessment of the tax occurring at 30 June 2027.