The release of the draft Division 296 legislation just before the holiday season has sparked widespread criticism from professional bodies across the financial services industry. At Saby + Partners, we believe this rushed consultation process represents a troubling pattern that undermines the integrity of Australia’s tax policy development.
A Pattern of Rushed Consultation
On 19 December 2025, Treasury released the draft Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2025 for public consultation, with responses due by 16 January 2026. This timing is not just inconvenient—it’s strategic, and it’s unacceptable.
As our Managing Director Nitin Saby stated: “Treasury just pulled a classic stunt. Drop it late, rush it fast. That’s not consultation, that’s a speed run and frankly disgraceful. Mid-December is when offices shut down, people take leave, teams run on skeleton staff, and decision makers disappear. This timing isn’t neutral, it’s tactical.”
Industry Bodies Unite in Criticism
The Tax Institute, in its submission to Treasury, highlighted that approximately half of the consultation period occurred when most businesses were completely shut down and many professionals remained unavailable. This severely limited stakeholders’ ability to provide comprehensive and thoughtful feedback.
The Institute pointed out that this is part of an ongoing pattern. Both the Better Targeted Concessions Consultation Paper released in 2023 and an earlier draft bill that same year were open for consultation for just two weeks each.
Tony Greco of the Institute of Public Accountants echoed these concerns, noting that the bill had been “hastily put together and revised,” contributing to widespread unease among industry professionals.
The Real Cost of Rushed Policy
The Tax Institute’s submission made a critical point: “Rushed consultation undermines confidence in the process and increases the risk of poor policy outcomes and unintended consequences, potentially compromising the integrity of the tax system and adversely affecting the broader community.”
The previous Division 296 proposal stands as clear evidence of what happens when consultation is inadequate. The need for significant revisions following the Treasurer’s announcement on 13 October 2025 demonstrated that the original design had serious flaws that proper consultation might have identified earlier.
What This Means for Your Superannuation
Division 296 will impact Australians with total superannuation balances exceeding $3 million, introducing an additional 15% tax on earnings above this threshold. For balances exceeding $10 million, an additional 25% tax applies to that portion. While the government has made some adjustments to address initial concerns—most notably moving from taxing unrealised gains to a realised earnings approach—the rushed consultation process raises questions about whether all potential issues have been properly identified and addressed.
For high-net-worth individuals and those approaching the threshold, the implications are significant and require careful planning. The lack of adequate consultation time means that some unintended consequences may only become apparent after the legislation is enacted.
Our Perspective at Saby + Partners
At Saby + Partners, we’ve witnessed firsthand how rushed policy development can create confusion and uncertainty for our clients. Effective tax policy requires careful consideration, meaningful stakeholder engagement, and adequate time for analysis and feedback.
We call on Treasury to adopt more transparent and inclusive consultation processes that respect both the complexity of tax policy and the practical realities of the professional calendar. Quality legislation requires quality consultation—and that takes time.
What You Should Do Now
If you have superannuation balances approaching or exceeding $3 million, we recommend scheduling a consultation with our team to review your current position and explore strategic options. The proposed legislation is set to commence from 1 July 2026, with the first assessment occurring at 30 June 2027.
Despite the rushed legislative process, there are still planning opportunities available to optimize your position under the new rules, including potential strategies before the 30 June 2026 transitional date.
The Division 296 consultation period may have been a “speed run,” but your financial planning shouldn’t be. Contact Saby + Partners today to ensure your superannuation strategy is properly positioned for these upcoming changes.
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Disclaimer: This blog post is for informational purposes only and does not constitute financial or legal advice. The Division 296 legislation is subject to parliamentary approval and may be amended. Please consult with a qualified professional regarding your specific circumstances.