Our submission on Division 296 draft regulations

On 7 April 2026, the Institute of Financial Professionals Australia (IFPA) lodged its submission to Treasury on the draft regulations supporting the Building a Stronger and Fairer Super System Act 2026 . In its submission, IFPA argues the draft regulations in their current form…

On 7 April 2026, the Institute of Financial Professionals Australia (IFPA) lodged its submission to Treasury on the draft regulations supporting the Building a Stronger and Fairer Super System Act 2026.

In its submission, IFPA argues the draft regulations in their current form raise significant practical and fairness concerns that should be addressed before finalisation.

Key concerns raised in the submission include:

• Deceased estate rules may delay administration and create uncertainty. The proposed “single final assessment” model may leave a deceased member’s Division 296 position unresolved long after death, encouraging estates to remain open for longer and delaying final distributions.


• The rules may create an unfair mismatch between liability and benefit. In some cases, the estate may bear the Division 296 tax liability while the superannuation death benefit is paid directly to another person, creating inequitable outcomes and practical recovery issues.


• Actuarial certification requirements are unclear. The draft regulations do not clearly state whether an actuary is being asked to certify a dollar amount, a percentage or a methodology, creating uncertainty and increasing compliance costs.


• The small fund attribution formula may produce distorted outcomes where reserves exist. By relying on total superannuation balance values, the formula may unfairly attribute earnings associated with reserves to members who may have no entitlement to those amounts.

Further details regarding these issues and IFPA’s recommended amendments can be found in our submission and media release.