Greenlight Christmas Newsletter Wrapping Up 2025 with Key SMSF Updates
As we approach the end of the year, we would like to wish you and your families a safe and joyful Christmas period. Thank you for your ongoing trust and support throughout 2025, it has been our pleasure to work with you.
Along with our Christmas well-wishes, we also wanted to share some important updates and reminders regarding your superannuation and our service processes heading into 2026.
Action Items
- Changes to how we deliver finalised documents
- Accidental illegal early access of super on the rise
- The $3m super balance/Div 293 Tax – Key Changes
Changes to how we deliver finalised documents
To improve privacy, security and be more ‘green’, we will be transitioning to a fully online delivery method for all signed documents after finalisation or lodgement.
- Greenlight online portal for SMSFs or,
- Your dedicated SharePoint folder
You will receive a notification once documents are ready, along with instructions on how to access and download them.
We appreciate your support as we implement this important privacy enhancement.
Accidental illegal early access of super on the rise
There are some personal ATO issued notices that can be paid using your superannuation. These are
- Division 293 tax assessments, and
- Excess contributions assessments
These notices are addressed to you personally, and the super fund should not make a payment directly based on these assessments. If these amounts are not released correctly this will lead to additional tax consequences for you personally.
If you’d like to release the fund from your super to cover the Div 293 tax, here’s the proper process:
- Do not pay the amount from the SMSF based solely on the assessment issued to you personally.
- You must first follow the steps on the assessment notice to elect for the ATO to issue a Release Authority to the super fund.
- Once the ATO issues the Release Authority to the SMSF, we will receive a superannuation specific payment slip addressed to the fund.
- The payment should then be processed from the SMSF bank account, using the details on that payment slip.
If you receive a Division 293 notice or excess contributions assessment and are unsure of the next steps, please contact us and we will guide you through the process.
The $3m super balances/Division 296 Tax — Key Changes
The Federal Government has announced refinements to Div 296 tax designed to tax those with total super balances over $3 million. Key updates include:
- Unrealised gains will no longer be taxed.
- Two thresholds are proposed:
- Over $3 million: 15% tax on realised earnings above this level
- Over $10 million: 10% additional tax on realised earnings above this level (total 25%)
- Both thresholds will be indexed to inflation.
- Commencement date delayed to 1 July 2026 with first relevant calculation date being 30 June 2027. This means the first notices of Division 296 assessments will be expected to be issued in the financial year 2027/28.
- This tax applies to the individual and is not reported in the SMSF tax return. The system facilitates the release of the tax amount from superannuation in accordance with the same process outlined in point 2 of this newsletter
Please see the examples below for better understanding.
Example 1:
A member with a $5 million balance and $500,000 in realised earnings would pay Division 296 tax only on the portion above $3 million. The proportion of her $5 million balance above the $3 million threshold is 40% ($2 mil / $5 mil).
Approximate additional tax: $30,000 ($500,000 * 40% * 15%).
Example 2:
A member with a $13 million balance and $900,000 in realised earnings would pay Div 296 on both the portion above $3 million and the portion above $10 million. The proportion of her balance above the $3 million threshold is 76.92% ($10 mil / $13 mil) and the proportion of her balance above the $10 million threshold is 23.08% ($3 mil / $13 mil).
Approximate additional tax: $124,614 ($900,000 * 76.92% * 15% + $900,000 * 23.08% * an extra 10%).
Draft legislation is yet to be released, and further consultation will occur.
We will provide further guidance once the draft legislation becomes available.
Office Closure & Christmas Hours
Our office will be closed over the Christmas period from 4pm on Tuesday 23 December 2025 and we will reopen on Monday 5 January 2026.
🎄 Festive Fun Fact
Did you know the world’s first artificial Christmas tree wasn’t plastic?
It was made from green-dyed goose feathers in 19th-century Germany! 🎄
We thank you once again for your continued support and wish you and your loved ones a wonderful Christmas and a Happy New Year. We look forward to assisting you again in 2026.
Greenlight Super Team
T: 6273 1066
3/19 Marcus Clarke St, New Acton, ACT 2601
PO Box 3276 MANUKA ACT 2603
