What This Draft Ruling Covers
The ATO has released a draft ruling, LCR 2026/D6, explaining how to work out the total superannuation balance value of a super interest, a concept linked to the start of Division 296 tax.
The draft ruling covers how most super accounts will simply use their withdrawal benefit to determine this value. Defined benefit interests, income streams, and certain innovative pensions require special valuation methods set out in regulations.
The draft also explains transitional rules applying just before 1 July 2026, and separate rules for super interests split under a family law payment split.
Draft Status
This is still a draft out for public comment, not yet the ATO's final legal position. It is proposed to apply from 30 June 2026 once finalised.
Who the Draft Ruling Mentions
The summary states this mainly affects people with defined benefit super interests, SMSF members, innovative income stream holders, and anyone affected by a family law super split, plus the accountants and advisers who deal with their total super balance calculations.
Key Actions
- Note this is a draft ruling only - the ATO's final position is not yet settled, so it should not be relied on as binding advice yet
- Those with defined benefit interests, innovative income streams, or SMSF interests can review how the proposed valuation methods and the transitional rule just before 1 July 2026 would apply
- Appendix 1 of the draft ruling contains a summary of how total superannuation balance amounts could change for specific interest types
- Comments on the draft can be prepared via the process described in Appendix 2 of the ruling - see the published document for how to lodge comments
- Bookkeepers, accountants and SMSF trustees can flag clients with defined benefit or innovative income streams affected by Division 296 for monitoring as this ruling progresses toward finalisation
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.