Education

The Division 296 tax passed Parliament on 10 March 2026. The detail matters — several misconceptions have circulated.

Administration feescover record-keeping, communications, and compliance. Some funds charge a flat monthly amount; others charge a percentage of your balance; many charge both. A percentage-based fee grows in dollar terms as your balance grows.

Both structures are legitimate. Both carry real risks frequently understated by their advocates. In 2026, with new tax rules and heightened scrutiny of fund performance, the comparison deserves a clear-eyed assessment.

This sits at the intersection of two powerful trends — rising life expectancy and the hard arithmetic of retirement spending. A 65-year-old Australian woman today can expect to live well into her mid-eighties. Many will reach their nineties. That is potentially 25 to 30 …

For anyone with combined income above $250,000 — taxable income, reportable fringe benefits, and total net investment losses — concessional contributions attract an additional 15% tax levy, bringing the effective rate from 15% to 30%. That still compares favourably to the 47% marginal rate …

For most working Australians, the three dominant wealth-building options are superannuation, shares, and property. Property investors point to tangibility and leverage; share enthusiasts cite liquidity and dividends; super advocates point to unmatched tax concessions and preserved, long-term saving. In 2026, with the Superannuation Guarantee …

An SMSF is a private superannuation fund regulated by the Australian Taxation Office. SMSFs can have up to six members, and in most cases the members themselves act as trustees — simultaneously the beneficiaries and the decision-makers.