The federal government introduced its revised Division 296 tax legislation into parliament within minutes last week with the proposed law bearing a new name.
Treasurer Jim Chalmers introduced the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 as the first order of government business on 11 February.
The introduction of the bill means it has been read for the first time and Chalmers moved it be read a second time, which is when the debate over its content will take place. That reading and debate was made an order of the day for 12 February.
The bill was previously called the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 and it retains part of the title in brackets as the name for schedules one to three, while schedule four will introduce changes to the Low Income Superannuation Tax Offset (LISTO).
In tabling the bill, the government revealed its expected increase in tax receipts from the Division 296 impost for the five years from 2024/25.
The explanatory memorandum recorded zero for that financial year, as well as for 2025/26 and 2026/27, due to the original bill failing to pass through parliament, but $100 million in revenue is expected in 2027/28 and a further $2.05 billion in 2028/29.
“The legislation delivers on the government’s long-standing policy commitment to better target superannuation tax concessions for individuals with large balances,” Chalmers said.
“From 1 July 2026, superannuation tax concessions will be made fairer and more sustainable by reducing tax breaks for those with balances over $3 million.
“These changes are consistent with the legislated objective of superannuation, to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way.”
Association of Superannuation Funds of Australia chief executive Mary Delahunty welcomed the tabling and called for quick action.
“This bill does two things: it applies an additional tax to earnings on the 0.3 per cent of Australians with the highest super balances and it strengthens LISTO so that over a million low-income workers will have improved retirement savings,” Delahunty said.
“Together, these changes make super tax settings fairer and more sustainable. I encourage the parliament to pass the legislation without delay.”
The new bills incorporate changes to the original Division 296 proposals released in October last year when the government moved away from its plan to tax unrealised capital gains and not implement any indexation of the $3 million threshold.
Draft legislation was released for consultation on 19 December last year, with the window for submissions closing on 16 January this year.