The Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026 received Royal Assent on 13 March 2026 and commenced 1 July 2026. An extra 15 per cent applies to earnings attributable to the portion of a member's total superannuation balance between $3 million and $10 million, and a further 10 per cent above $10 million. Both thresholds are indexed and the tax applies to realised earnings; the unrealised gains component of the original design was removed in the October 2025 redesign.
Funds can make a one-off, irrevocable election to reset the cost base of their CGT assets to market value at 30 June 2026 for Division 296 purposes. It applies at fund level rather than asset by asset, and it is lodged with the 2026-27 return.
That timing is the practical problem for advisers. The decision is made in 2027 or later, but the valuation it depends on is dated 30 June 2026. Funds that did not obtain a property valuation at that date need a retrospective one before they can model the election properly. See SMSF property valuations.
For advisers
We value, you adviseWhether a fund should elect depends on member balances, the unrealised position across the portfolio, expected realisations and the member's wider circumstances. That is your advice to give. What we do is make sure the market value the modelling runs on is documented rather than estimated, because an election is irrevocable and a soft number underneath it is a poor place to be.
Dealings that are not on commercial terms can push fund income into the non-arm's length category, where it is taxed at a punitive rate. Property is where this most often bites, through acquisitions at other than market value, related-party leases on soft terms, and improvements funded outside the fund.
The defence is contemporaneous evidence. A valuation dated to the transaction, prepared independently, is what demonstrates the terms were commercial. A figure reconstructed afterwards is worth having, but it is a weaker position than one obtained at the time.
| Requirement | Where it is prepared |
|---|---|
| Division 296 reset value at 30 June 2026 | CGT Property Valuations |
| In-specie transfers and related-party acquisitions | CGT Property Valuations |
| CGT on disposal of fund property | CGT Property Valuations |
| Annual 30 June market value for audit (SISR 8.02B) | SMSF Property Valuations |
| Historical 30 June values missed in prior years | SMSF Property Valuations |
Both practices are run by the same valuer, so a fund needing both deals with one person. Annual compliance work goes to SMSF Property Valuations, which is built for it.
Complying superannuation funds keep the one-third CGT discount and are outside the 1 July 2027 changes, so a fund does not need a 1 July 2027 valuation for that purpose.
The same members almost always hold property outside super. Investment property in personal names, in a family trust or in a partnership is caught by the reform in the ordinary way, and each asset is measured separately at 1 July 2027. Advisers running Division 296 conversations with property-holding members are already in the room for that discussion. See the 1 July 2027 valuation page.
| Report | Fee (AUD inc. GST) | Turnaround |
|---|---|---|
| Residential fund property, current or retrospective | $297 | 24 to 48 hours |
| Commercial fund property, current or retrospective | $595 | 24 to 48 hours |
Specialised commercial assets and rural holdings are quoted individually.
A one-off, irrevocable election allowing a fund to reset the cost base of its CGT assets to market value at 30 June 2026 for Division 296 purposes. It applies to the fund's assets as a group and is lodged with the 2026-27 return, so the decision is made after the valuation date it depends on.
Yes. A retrospective valuation for 30 June 2026 is prepared from sales evidence around that date, at the same fee as a current report. It is the usual position for funds now considering the election.
Annual 30 June market values for audit purposes are prepared by our sister practice, SMSF Property Valuations, which is built for that work. Anything CGT-driven or Division 296 related is prepared here. Both are run by the same valuer.
No. Complying funds keep the one-third discount and are outside the 1 July 2027 changes. Members holding property personally, in a trust or in a partnership are affected in the ordinary way, so the fund and the member can have different answers.
