TITLE: ATO Draft Rulings: How Your Total Superannuation Balance Is Calculated
The ATO has released two draft rulings explaining how to calculate your total superannuation balance (TSB) under updated rules. The changes matter beyond Division 296: your TSB can affect contribution caps, carry-forward concessional contributions and other superannuation eligibility tests.
If you have a larger super balance, manage an SMSF or are planning contributions before 30 June 2027, check what the drafts mean for your records. They are not final rulings, and the ATO is seeking public feedback.
Check what the ATO has changed
On 4 November 2026, the ATO published Draft Taxation Ruling TR 2026/D3 and Draft Law Companion Ruling LCR 2026/D6. Consultation opened on 5 November, and comments close on 18 December 2026.
The drafts have different roles:
- TR 2026/D3 explains how an individual’s TSB is calculated.
- LCR 2026/D6 explains how to value a superannuation interest for TSB purposes. It also covers particular payment-split situations involving a non-member spouse.
The ATO says the drafts are intended to provide clarity to individuals, superannuation funds and other stakeholders. They remain proposals, so treat them as the ATO’s current draft view rather than final guidance.
Replace outdated assumptions with the new calculation
The ATO withdrew LCR 2016/12 from 4 November 2026. That ruling explained the earlier TSB framework, introduced by legislation in 2016. The ATO says the 2026 Building a Stronger and Fairer Super System legislation changed how TSB is calculated from 30 June 2026. To the extent the earlier ruling’s views remain relevant, they have been incorporated into draft TR 2026/D3.
Under the new approach, your TSB generally adds together the TSB values of your Australian superannuation interests, along with relevant rollover benefits and certain limited recourse borrowing arrangement (LRBA) amounts. It subtracts qualifying personal injury or structured-settlement contributions.
For most interests, the TSB value is based on the withdrawal value. Retirement-phase account-based income streams use a calculation that reflects the transfer balance at 30 June, adjusted to the current withdrawal value. Defined benefit and certain prescribed interests are different: the fund determines their value using the methods set by regulations and reports it to the ATO. You do not calculate that prescribed value yourself.
One detail deserves care: an LRBA amount may count towards TSB for some purposes, including contribution-cap tests, but is disregarded when calculating TSB for Division 296. Don’t assume that one figure automatically applies across every superannuation test.
Check your TSB before making contribution decisions
Your TSB can influence whether you qualify to:
- carry forward unused concessional contributions;
- access the non-concessional contributions cap or bring-forward arrangement;
- use the work test exemption relevant to deducting personal superannuation contributions; and
- receive the government co-contribution.
It is also relevant to Division 296 tax, which applies from the 2026–27 income year. That makes accurate fund reporting and valuation records increasingly important. For that year, the TSB is tested at 30 June 2027. The ATO’s superannuation guidance under development indicates that separate draft rulings on Division 296 tax are still to come.
Use this checklist to prepare
Before acting on contribution plans or year-end figures:
- Collect current fund information. Check statements and balances for each Australian super interest, including any SMSF interests.
- Identify unusual arrangements. Note rollovers, payment splits, defined benefit interests and LRBAs, as these may affect how figures are assembled or valued.
- Confirm what the fund reports. For defined benefit and other prescribed interests, check the fund’s reported value rather than estimating it yourself.
- Keep records for the relevant date. The 2026–27 TSB test date is 30 June 2027, so accurate fund information around that date matters.
- Follow the consultation. If the draft approach affects your circumstances, review the ATO rulings and note the 18 December 2026 comment deadline.
If you run a business and are planning personal super contributions, don’t rely on an old TSB calculation or treat every TSB-related test as identical. The drafts cover technical cases, and the ATO may refine its views after consultation. This is general information, not financial or tax advice.
Sterlinx Global’s Global Tax Compliance Suite supports businesses with ongoing bookkeeping, tax calculations, filings and year-end compliance across relevant markets. Contact us to discuss your business compliance requirements.
What is a total superannuation balance?
Your TSB is the combined value of your Australian superannuation interests under the applicable calculation rules. It can affect Division 296 tax, carry-forward concessional contributions, the non-concessional contributions cap and bring-forward access, the work test exemption and government co-contribution eligibility.
Why did the ATO withdraw LCR 2016/12?
The Building a Stronger and Fairer Super System Act 2026 changed the TSB calculation from 30 June 2026. The ATO withdrew LCR 2016/12 and says any views that remain relevant have been incorporated into draft TR 2026/D3.
How is the total superannuation balance value worked out?
For most interests, the value is generally based on the withdrawal value. Defined benefit and certain prescribed interests are valued by the fund under prescribed regulations, with the fund reporting the figure to the ATO.
What happens next?
Public comments on both draft rulings close on 18 December 2026. Draft rulings on Division 296 tax are also expected. For 2026–27, your TSB is tested at 30 June 2027, so keep relevant fund valuations and records accurate.