What the calculator does
- Excess above $3M. The portion of your TSB above the $3M threshold - this is the part Div 296 applies to.
- Proportion of earnings. The same proportion of your fund's annual earnings is treated as attributable to the excess.
- Additional 15% tax. Applied to those attributable earnings, on top of the existing 15% accumulation or 0% pension earnings tax.
What it doesn't do
- It uses a simplified mechanic. The actual Div 296 calculation is a notional earnings measure based on year-on-year change in TSB, adjusted for contributions and withdrawals. This calculator approximates it with a proportional split of the realised earnings you enter - close enough for a single-year estimate but not exact.
- It doesn't project balance growth. The $3M threshold isn't indexed; bracket creep pulls more members into Div 296 each year. The full Byrz engine models this trajectory across the hold period.
- It doesn't handle multi-member SMSFs. Div 296 applies per member. If your SMSF has multiple members, calculate each member's TSB separately.
Caveats
Division 296 is proposed as of late 2026 - not law. The mechanic, threshold and rate may all change in the final legislation. The current proposal applies from the 2026-27 income year.
For SMSF property holdings specifically, the Byrz $49 property report models Div 296 alongside the existing 15% / 0% earnings tax across the full forecast horizon, and compares SMSF outcomes against personal, joint, trust and company ownership.