Inherit Team

A recent ATO private binding ruling provides a useful reminder for estate planning, superannuation and financial advisers: when superannuation death benefits are paid to an estate, the tax outcome can depend heavily on how the Will is drafted and how the estate is administered.

The new Division 296 tax is now law and is scheduled to apply from 1 July 2026 to individuals with total superannuation balances above $3 million. The ATO has confirmed that the measure will reduce superannuation tax concessions for individuals above that threshold. There is a further threshold of $10 million where an additional tax will apply to earnings above that threshold.

The 2026 Federal Budget should prompt more than a tax review. For many Australian families, it should trigger an estate planning review. Much of the public discussion has focused on tax reform, housing affordability, negative gearing, capital gains tax and discretionary trusts. But for advisers, accountants and lawyers, there is a deeper issue. The real question is not just how wealth is taxed- it is how wealth is owned, controlled, protected and ultimately transferred. The Budget...