Income Tax (Transitional Provisions) Act 1997

Section 296‑15 of the Income Tax Assessment Act 1997 applies to the 2026‑27 income year and later income years.

However, Subdivision 296‑B of the Income Tax Assessment Act 1997 applies in relation to the 2026‑27 income year as if:

the reference in paragraph 296‑40(1)(a) to just before the start of the year were omitted; and

the references to your total superannuation balance reference amount in the formula in subsection 296‑40(2) were references to your total superannuation balance at the end of the year; and

the reference in subsection 296‑45(1) to just before the start of the year were omitted; and

the references to your total superannuation balance reference amount in the formula in subsection 296‑45(2) were references to your total superannuation balance at the end of the year.

The effect of this subsection is that, for the 2026‑27 income year, whether Division 296 tax is payable by you, and the amount of that tax payable, is determined by reference to your total superannuation balance at the end of the year, rather than either just before the start or at the end of the year.

You are not liable to pay Division 296 tax for the 2026‑27 income year if you die on or before the last day of the year.