Division 296 is 4 weeks away - at what point does it change your super vs. outside-super strategy?

With Division 296 starting 1 July, I've been rethinking how super is to be used as a wealth-building vehicle long term.

Quick recap for anyone not across it: from 1 July 2026, if your total super balance exceeds $3 million at year-end, you'll pay an additional 15% tax on earnings attributable to the portion above that threshold. The ATO calculates the liability, and you can opt to pay it directly from your super fund rather than out of pocket.

For this community specifically, $3M isn't a distant figure, it's a real planning horizon. A 35-year-old maxing concessional contributions on a high income, with a decent balance already, could hit that threshold well before preservation age depending on returns.

So the question I'm sitting with: is there a crossover point where redirecting contributions outside super starts to make more financial sense?