Draft Ruling on Total Superannuation Balance
The ATO has released a draft ruling, TR 2026/D3, explaining how total superannuation balance is worked out. This balance is used to check eligibility for things such as extra contribution caps, the government co-contribution, spouse contribution tax offsets, the work test exemption, and whether Division 296 tax is owed.
How the Balance Is Measured
The draft ruling sets out that the balance is generally measured at the value at the end of 30 June each year.
What Is Added
- Super interests
- Certain roll-over amounts
- Loan balances from limited recourse borrowing arrangements in self-managed super funds (SMSFs)
What Is Subtracted
- Structured settlement contributions
Relevance to SMSFs
The ruling matters most for small business owners running an SMSF, especially those with property or other assets bought using a limited recourse borrowing arrangement, and for anyone tracking caps on extra super contributions.
Draft Status
The ruling is still in draft form and is open for public comment. It is not yet the ATO's final binding position.
Key Actions
- If an SMSF has a limited recourse borrowing arrangement (LRBA), check whether it was entered into on or after 1 July 2018, as this affects whether the loan balance counts toward total superannuation balance
- If total superannuation balance is relied on to work out contribution caps, co-contribution eligibility, or the work test exemption, review the draft ruling's method before year-end planning
- Note this is a draft only (TR 2026/D3), not yet finalised or legally binding - check the ATO's Advice under development program (item 4181) for its current status before relying on it
- Comments on how the ATO has described the calculation can be lodged as outlined in Appendix 2 of the draft ruling
- The related draft Law Companion Ruling LCR 2026/D6 covers how to value specific superannuation interests referenced in this draft
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.