Stratus Financial Group

🚨 From 1 July 2026, Division 296 introduces an additional layer of tax for individuals with total superannuation balances above $3 million, with higher rates applying to balances exceeding $10 million.

In broad terms, this measure applies an additional tax of between 15% to 25% to earnings attributable to the portion of a super balance above the relevant threshold. This results in an effective tax rate of approximately 30% to 40% on those earnings.

While eligibility rules are unchanged, the long‑term after‑tax efficiency of holding very large balances within superannuation will differ depending on individual circumstances. For some, retaining funds within super may continue to produce a favourable outcome. For others, withdrawing funds or holding investments outside super may be more appropriate over time.

🔗 For more information, visit our website: https://stratusfinancialgroup.com.au/financialplanning/superannuation-changes-from-1-july-2026-what-high-income-earners-should-be-reviewing-now/

❗️From 1 July 2026, payday super will commence. Employers will be required to pay Superannuation Guarantee contributions at the same time as salary and wages, with funds required to reach the superannuation account within seven days of payday.

This replaces the current quarterly contribution framework and improves the timeliness of contributions. However, it also introduces new complexities.

Super contributions are counted against contribution caps when they are received by the fund, not when they are earned. As a result, changes in payment frequency increase the risk of contributions falling into an unintended financial year. This risk is heightened for individuals with multiple employers, employment changes or high levels of employer contributions.

Visit our article to view our article on the 1 July 2026 Super changes and get in touch with your adviser today for a proactive review of your position. https://stratusfinancialgroup.com.au/financialplanning/superannuation-changes-from-1-july-2026-what-high-income-earners-should-be-reviewing-now/