Individuals with defined benefit interests – members with such interests will also be subject to Division 296 tax however the draft legislation states that regulations will provide calculations for TSB and earnings for these superannuation interests. We are yet to see these regulations.
State higher level office holders with superannuation contributions to constitutionally protected funds – members with such interests will have their earnings excluded from Division 296 taxation. Although these earnings are not subject to Division 296 tax, these superannuation interests will be counted in the member’s TSB to determine if they exceed the $3 million threshold, and if they do, Division 296 tax is imposed only in respect of their earnings from other superannuation interests that are not protected.
Commonwealth justices and judges in respect of defined benefit interest in a superannuation fund established under the Judges’ Pension Act 1968 – members with such interests will have their earnings excluded from Division 296 taxation if the member was appointed prior to 1 July 2025 and remains employed.
Territory Supreme Court Judges in respect of defined benefit interests in their judicial pension scheme are included – earnings from all interests of ACT Supreme Court judges including earnings from interests in the judicial pension scheme are within scope of this tax and such earnings are not excluded.