With superannuation reforms on the horizon, professionals across the financial services industry are turning their attention to Division 296 – set to impact individuals with super balances above $3 million from 1 July 2025.
At TAG Financial Services, we pride ourselves on staying ahead of legislative changes and helping our clients and colleagues do the same. To that end, Emma Partenza, Superannuation Specialist at TAG, was recently featured in The Australian Financial Review discussing the implications of Division 296.
In the AFR article, Emma unpacks the practical complexities of the new tax, including:
- The tax applies to unrealised gains, meaning liabilities can arise even if no assets have been sold or income received.
- It’s calculated across all of an individual’s superannuation interests, requiring accurate tracking and consolidated planning.
- Negative earnings will be carried forward to offset future positive earnings, creating planning opportunities but also requiring clear strategy.
- The tax is automatically applied by the ATO – individuals cannot opt out.
- Pension phase accounts may still be affected, despite tax-free treatment of earnings under current rules.
- Clients will need to plan for liquidity management, asset allocation, and the broader impact on wealth and retirement goals.
Emma’s insights reflect TAG’s practical and technical approach to superannuation strategy, particularly in navigating new and evolving legislation.
As she notes in the article, “many clients won’t feel the effects of Division 296 immediately, but delayed planning may limit options. Now is the time to act”.
2025 TAG Super and Tax Strategies Day
Clients need clarity in a time where there is ever increase media around this topic – and they need it from their trusted advisers.
To help professionals get ahead of these reforms and sharpen their strategy across key areas, we invite you to our upcoming TAG Super and Tax Strategies Day.
Created for accountants and advisers, this in-depth event will cover:
- The practical impact of Division 296 and superannuation reform
- Early retirement planning and wealth advisory strategies
- Business structuring for tax efficiency and asset protection
- Maximising client outcomes in a changing environment
- Enhancing technical expertise and future-readiness in advisory services
TAG’s senior specialists will lead sessions focused on practical solutions, real-world case studies, and strategic insights to support high-value client conversations.
View the program here.
TAG Financial Services
TAG Financial Services is your complete superannuation and advisory partner—offering 100% onshore expertise. For almost 30 years, we’ve helped accountants stay compliant, deliver strategic advice, and extend solutions across super, tax, retirement, and wealth management.
We give you the clarity, control, and confidence to navigate complexity and grow your advisory. As hosts of Australia’s longest-running super event, we keep you informed and ahead.
Get in touch to see how TAG can support your practice.
Contact super@tagfinancial.com.au or call 03 9886 0800.
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.