Australia’s new Division 296 tax will reshape how high-balance superannuation members plan their future. While the broad framework has been announced, many finer details are still to come so trustees should start preparing, but avoid overreacting until the legislation is finalised.

In a widely expected move the Reserve Bank of Australia (RBA) has held interest rates. Australia’s official cash rate remains steady at 3.60%.

The Federal Government has announced major adjustments to its proposed Division 296 superannuation tax, removing the tax on unrealised gains, introducing a tiered rate structure, and delaying the start date to 1 July 2026.