Division 296 is expected to take effect from the end of the 2026 financial year. While it has not yet been legislated (and there could be changes to how it has been proposed), it is already generating questions, concerns, and in some cases, panic from clients.
As an accountant, you may find yourself at the frontline of these conversations. With many clients affected, the challenge is not just about knowing the technical detail, but about guiding discussions in a way that reduces fear, builds trust, and points toward strategic action. This is where your role as a trusted advisor becomes pivotal.
Set the Tone Early
Clients often arrive with headlines, half-truths, or worries picked up from friends and the media. A calm, confident tone is essential. Reassure them that this reform is not the end of effective planning, just a shift in the rules. By positioning yourself as a steady hand, you help clients move from reactive anxiety to constructive engagement.
Keep the Focus on What Matters Most
It’s easy for conversations to get bogged down in technicalities. Most clients care about one thing: whether their personal long-term goals are still achievable.
Guide the conversation with questions such as:
- What outcomes matter most to you in retirement?
- How do you want your wealth to work for you and your family?
This shifts the dialogue away from “what’s being lost” toward “what’s still possible.”
Use new rules as an opportunity
Having the possibility of these new rules coming in has already brought clients to our doors, and it is an opportunity to look at their situation with a larger lens than JUST the new $3mill limits. Having meaningful review of their current situation, trusteeships, account balances, pension status and BNBFs has uncovered issues far greater than the proposed tax cost of these new rules.
This is an opportunity for your clients to review their structures and re-align for their next phase… so don’t wait for the legislation to be finalised, we need to start the discussions NOW to be ready for whatever comes next.
Simplify the Options
Clients look to you for clarity. Break down practical strategies rather than legislative minutiae:
- Diversify wealth creation: Look beyond superannuation where appropriate to reduce reliance on a single asset class.
- Review contribution strategies: Timing and amounts can be optimised under the new rules.
- Plan for succession and intergenerational wealth transfer: Ensure structures such as companies, trusts, superannuation strategies, and business succession arrangements remain fit for purpose.
Stripping away jargon empowers clients to make informed choices without feeling overwhelmed.
Build in Flexibility for the Future
Division 296 may not be the last major reform. Encourage strategies and structures that are adaptable to ongoing change. This protects clients from future disruption and reinforces your role as a long-term partner, rather than a reactive problem-solver.
TAG’s Role in Supporting Your Strategy
TAG Financial Services offers a dedicated, fully onshore superannuation team, working alongside our wealth management advisory specialists to support you and your clients.
By leveraging TAG’s expertise, you can:
- Align Division 296 strategies with broader wealth, estate, and succession planning
- Ensure superannuation and retirement planning are optimised
- Implement structures and financial strategies that protect family wealth and business continuity
- Give clients clarity, confidence, and actionable strategies in the face of legislative change.
Division 296 may be new territory, but your role remains the same: help clients cut through the noise, see the bigger picture, and make informed, strategic decisions.
Get in touch with our team at super@tagfinancial.com.au.
Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2025. Please do not reproduce without the expressed written consent of the author.