Article written by Sarah Davie
Associate Director & Licensed SMSF Accountant
Although Division 296 affects a relatively small proportion of Australians, some SMSF investors are more likely to be impacted.
The 4 key investor groups:
1. Business Owners Holding Commercial Property in an SMSF
Many business owners hold their business premises inside an SMSF. Property values may increase significantly over time, pushing balances above the $3 million threshold.
2. Long‑Term SMSF Investors
Funds that have held assets for 15–20 years often experience significant capital growth.
3. Highly Concentrated SMSF Portfolios
SMSFs holding a single large property or limited number of assets may exceed the threshold more quickly.
4. Couples with Uneven Super Balances
Because Division 296 applies per individual, couples with uneven balances may experience tax exposure even when their combined retirement savings are moderate.
Understanding these categories helps trustees identify whether Division 296 may impact their strategy.
Disclaimer: This article is general information only and does not take into account your personal circumstances. Always seek professional advice before making financial decisions.
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*Disclaimer: This article is general information only and does not take into account your personal circumstances. Always seek professional advice before making financial decisions.*
Sarah Davie is an Associate Director and Licensed SMSF Accountant at Rogerson Kenny Business Accountants. She specialises in Self-Managed Super Funds and advises trustees on compliance, strategy and superannuation legislation.
