Div 296 to come with potential implementation complexity, CA ANZ says

As previously reported on Accounting Times, late last week (11 February), federal parliament introduced the Division 296 bill, Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026, to the House of Representatives.

Tony Negline, superannuation and financial services leader at CA ANZ, said the bill was likely to raise only modest net revenue after implementation and ongoing costs for the ATO, super funds, tax agents, and individuals were considered.

“In this context, we encourage the careful review of the implementation cost assumptions outlined in the explanatory memorandum to ensure they do not underestimate the practical impact on super funds and professionals, including Chartered Accountants,” Negline said.

“We recognise the changes made to the policy settings and note that some practical challenges remain, particularly in relation to the additional administrative effort and costs that funds will need to manage over time,” he added.

Negline said there were opportunities to consider issues such as the treatment of franking credits and the handling of individual circumstances by the ATO to increase fairness and workability.

The bill’s explanatory memorandum said: “The amendments in this bill are designed to make Australia’s world-class superannuation system more sustainable and fairer through a modest change to ensure generous superannuation tax breaks are better targeted.”

Treasury said the legislation aimed to boost superannuation savings of low-income workers and ensure fairer, more sustainable super tax concessions.

Under the legislation, the Low-Income Superannuation Tax Offset (LISTO) payment cap will increase to $810 to reflect recent increases in the Superannuation Guarantee rate, and from 1 July 2026, tax breaks for those with balances over $3 million will be reduced.

“The legislation now explicitly links the Low Income Superannuation Tax Offset (LISTO) payment rates and thresholds with the personal income tax thresholds and the Superannuation Guarantee rate, ensuring that LISTO will remain consistent with these settings for the long term,” Treasury concluded.