Treasury seeking Consultation on new Superannuation Changes
The government is seeking consultation and feedback on the recent drafting of exposure draft regulations concerning the proposed changes to superannuation tax concessions as announced in the 2023‑24 Budget.
As a recap, under the proposed changes, there will be an additional tax at a rate of up to 15% on the portion of earnings attributable to an individual’s superannuation balance in excess of $3 million. This will be known as the ‘Div 296 tax’ and is proposed to apply from 1 July 2025.
The draft regulations propose amendments to the Income Tax Assessment (1997 Act) Regulations 2021 to prescribe certain values, calculations and methods that ensure all applicable superannuation interests will be properly assessed for the purposes of the new Div 296 tax.
The draft regulations also contain provisions that enable the calculation of the Div 296 tax for defined benefit interests. This includes:
- outlining methods to value defined benefit interests
- making modifications to the Div 296 earnings formula to appropriately capture notional contributions to defined benefit interests.
Interested parties are invited to comment on the drafting of these regulations up until 26 April 2024.
Phone: (08) 6324 2600
