BGL will highlight Division 296 as a key focus of its SMSF Roadmap at the 2026 SMSF Association National Conference.
The proposed Division 296 legislation has introduced significant uncertainty for the SMSF industry, raising complex questions about earnings calculations, member attribution, reporting obligations and how the new tax will ultimately be administered once finalised. With more than 50 per cent of all SMSFs in Australia administered on BGL’s Simple Fund 360, BGL has a responsibility to help the industry navigate this complex and evolving regulatory change with clarity and care.
“Division 296 is still proposed legislation and that has created a lot of questions across the industry,” said Ron Lesh, Founder / Director at BGL. “SMSF professionals are being asked to explain potential outcomes to clients without final regulations. This puts professionals in a very difficult position.”
While Division 296 is an individual-level tax assessed by the ATO, SMSFs are required to calculate and attribute fund-level earnings using a prescribed methodology and report those attributed amounts as required. This distinction has added to confusion for both practitioners and members.
In response, BGL is investing in tools to help clients understand and explain how Division 296 may apply, without treating outcomes as definitive or replacing professional judgement.
At the centre of this approach is the new Division 296 Planning Assistant in Simple Fund 360. The assistant uses real-time fund data to estimate Division 296 fund earnings, apply mandatory proportional, time-weighted attribution and help practitioners identify members who may be impacted, while recognising that only the ATO can determine final tax liabilities.
“Our responsibility as a software provider is to ensure accuracy and audit-readiness, especially in periods of legislative uncertainty” said Jeevan Tokhi, Chief Product Officer at BGL. “The Division 296 Planning AI Assistant is designed to help practitioners explore scenarios, understand why Division 296 earnings differ from taxable income and answer client questions with confidence, without overstating certainty where it doesn’t exist as yet.”
The Division 296 Planning Assistant is one of six generative AI assistants currently available in Simple Fund 360, with more coming. Built on large language models, the assistants provide conversational support, allow file uploads for interactive analysis and deliver entity-specific insights while maintaining appropriate disclaimers about the limits of AI-generated advice.
The assistant supports key Division 296 concepts, including fund-level earnings calculations, Total Superannuation Balance considerations, proportional attribution, carried-forward losses and transitional CGT rules, while maintaining a clear separation between fund calculations and the ATO’s assessment process. Practitioners can model scenarios using current-year data or project outcomes across multiple future years, enabling clients to conduct multi-year strategic planning for affected members.
BGL’s Division 296 initiatives are a central part of its broader BGL’s 2026 SMSF Roadmap, which will focus on regulatory readiness, deeper ATO integration and automation that reduces risk and manual effort for SMSF professionals.
BGL representatives are available throughout the SMSF Association National Conference (Booth 42) to discuss Division 296, demonstrate the AI Assistant and engage with practitioners on how technology can support informed decision-making as the legislation continues to evolve.
