Advisers hamstrung on Div 296 without ATO portal access

Mike Taylor

Managing Editor/Publisher, Financial Newswire

23 January 2026

The Financial Advice Association (FAAA) has used the Government’s legislative intentions around the Division 296 tax to reignite demands for financial advisers to be granted access to the Australian Taxation Office (ATO) portal.

The FAAA has used its response to the Government’s exposure draft legislation to argue that financial advisers seeking to help clients navigate the proposed new superannuation tax regime will be hamstrung without portal access.

“The introduction of the Transfer Balance Cap, Total Superannuation Balance and imminent introduction of BTSC means direct knowledge of the range of client superannuation accounts, taxable income and superannuation contributions is crucial to avoid the risk of providing inappropriate financial advice,” the FAAA response said.

“The BTSC reforms will increase the importance of a financial adviser monitoring and responding to clients potentially impacted by the Div 296 tax. This information is readily available in the ATO Portal, however financial advisers do not have access to the ATO Portal, despite being recognised tax advisers,” it said.

“The FAAA recommends the Government make further practical changes to assist with the implementation of existing and proposed superannuation tax policy by enabling financial adviser access to the ATO Portal.

“Streamlined adviser access (subject to appropriate protections) will reduce cyber threats, the risk of inappropriate financial advice and administration time and costs,” the FAAA said.

Looking at the exposure draft package around Better Targeted Superannuation Concessions (BTSC) bills more broadly, the FAAA noted that the large superannuation balance threshold and the very large superannuation balance threshold (‘Division 296 thresholds’) are proposed to be indexed to the Consumer Price Index in $150,000 and $500,000 increments respectively.

“This is consistent with the indexation of the general transfer balance cap. The FAAA is supportive of this proposal,” it said while urging alignment of the thresholds.

The FAAA response also called for a level playing field between small superannuation funds (including SMSFs) and wrap-style platform superannuation funds.

“The FAAA notes the different approaches in the Exposure Draft between small superannuation funds and other superannuation funds (i.e. large APRA-regulated funds) with respect to the calculation of taxable superannuation earnings under the transitional arrangements.

“Wrap-style platform superannuation funds typically have the systems functionality to determine the tax position at the individual account level, similar to the administration of SMSFs. The FAAA therefore believes that wrap-style platform superannuation funds should also have the option under the transitional arrangements to treat the market value of an asset as at 30 June 2026 as the cost base for Division 296 CGT purposes,” it said.

“As far as is practically possible, a level playing field should be enabled across all superannuation funds.”