My SMSF is over $3 million. How should I prepare for the new super tax?

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I understand the new laws that will apply an additional tax on people with superannuation balances above $3 million from the 2026/27 financial year also introduces an option for a “cost base reset” of assets. Could you explain how this works, what needs to be done and who needs to be notified?

SMSF specialist Meg Heffron points out that many self-managed super funds hold assets that have risen significantly in value over time. To ensure that this past growth is not caught by the new Division 296 tax, the legislation allows trustees to reset the cost base of all CGT assets held at June 30, 2026, to their market value at that date. This is an all-or-nothing choice, so you cannot reset some assets and ignore others.

If the trustee elects to use the reset, the fund must effectively keep two sets of records for each asset. The original cost base remains in place and is used when preparing the fund’s tax return and calculating capital gains tax in the usual way.

Alongside that, a second, adjusted cost base is created based on the market value at June 30, 2026. This adjusted figure is used solely for calculating earnings under the Division 296 tax and does not affect the fund’s normal tax position.

For example, imagine a fund holding two assets at June 30, 2026. One was purchased for $4 million and is now worth $7 million, while another cost $2 million but has fallen in value to $1.5 million. If the reset is........

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