Ep 383: The new and improved $3M super cap

Nov 18, 2025

Dive into the latest changes to the $3M super cap, where new rules are aimed at balancing wealth management for high-balance super fund holders. Discover the implications of illiquid assets and why some may choose to keep them in super. Explore listeners' dilemmas around buying a forever home and the trade-offs between selling shares or properties. Unpack strategies using family trusts versus companies for share investing, and learn the importance of waiting for clear legislation before making moves. It's a treasure trove of financial insights!

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INSIGHT

Why The Original 3M Proposal Failed

The government first proposed a harsh super tax targeting unrealised gains and a fixed $3M cap.
That proposal caused major backlash and forced reconsideration of the policy design.

INSIGHT

Taxing Unrealised Gains Was Novel And Risky

The original plan taxed earnings including unrealised capital gains inside super above $3M.
That would have been a novel and disruptive departure from usual tax practice.

INSIGHT

Fixed Cap Creates Future Bracket Creep

A fixed $3M cap would have caused bracket creep and affected many future retirees.
Industry analysis estimated 500,000 Australians could breach the cap over their lifetimes.

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In this week’s episode, Campbell tackles a variety of complex and timely superannuation and wealth-building questions, starting with the government’s revised $3 million super cap, also known as Division 296. He breaks down what’s changed, what’s stayed the same, and why the new rules are far more balanced than the initial proposal. Campbell also explores what high-balance super fund holders should consider, especially those with illiquid assets, such as property.

Listeners also asked about tough decisions around when to stretch for a principal place of residence, whether to sell shares or an investment property to fund a forever home, and how to balance flexibility with long-term security. On the topic of structures, Campbell clarifies the strategic differences between using a family trust vs a company for share investing, whether the same trust can be used for a business, and how corporate beneficiaries fit into the picture.

Whether you’re navigating changing super tax laws, planning a major home purchase, or managing wealth through trusts and structures, this episode is packed with clarity, insight, and practical advice to help you make smarter long-term decisions. Tune in to get the full breakdown and stay ahead of the curve.

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