Division 296: Australia's Latest Tax Grab on Family Generational Wealth
- Grant Abbott
- Mar 28
- 1 min read
If this accruals tax comes in expect:
Money to move from SMSFs to Family Protection Trusts
SMSFs to take off among younger generations to get to the $2M General Superannuation Threshold
$3M to keep on moving down over time each Budget - super bracket creep
Increase on death benefit taxes
We all thought Div 296 was dead in the water last December when the Bill was withdrawn from the Senate. But ChangeGPS yesterday speculated that the ~$10bn new revenue from super in forward estimates, signalled Labour plans to reintroduce Div 296. Could it otherwise be a plan to start taxing retirement super streams.....and/or even tax capital gains on realised gains on assets supporting those pensions? Coalition stated they'd revoke Div 296 if enacted and they win government.......and this would be a further ~10bn to national debt if it doesn't materialise.....and probably a significant portion anyway, if chunks of lump sums of retirees migrate out and into FPTs. For those SMSF members not yet at pre…