Prime Time with Bec Wilson Div296 super tax explained
Jan 21, 2026
Drew Meredith, a financial adviser and director at Wattle Partners, dives into the controversial Division 296 super tax in Australia. He clarifies the initial backlash over taxing unrealised gains and highlights significant changes, like no tax on unrealised gains. Listeners learn how the extra tax is calculated and who will be affected, with estimates pointing to a small percentage of wealthy Australians. Drew emphasizes the continued benefits of super as a retirement vehicle and the importance of collaboration between advisers and accountants.
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Family Panic Over Early Proposal
- Drew recalls his father panicking and wanting to withdraw all super when the original proposal leaked.
- That reaction illustrates the policy’s negative impact on public trust in super.
Unrealised Gains Proposal Was Overly Harsh
- The initial Division 296 proposal would have taxed unrealised capital gains on super balances above $3M, an unusual move globally.
- That approach risked catching ordinary people over time because the cap wasn’t indexed to inflation.
Revisions Made The Policy More Practical
- The revised plan removed unrealised gains taxation and indexed the caps to inflation.
- It kept a $3M per-person threshold and added an extra tier above $10M to better target large balances.