From sladen.com.au: Division 296, which is a proposed tax regulation, raises questions about the timing and strategy for superannuation withdrawals, as benefits may need to be modeled against potential tax implications.

Members can choose to withdraw funds before the regulation’s implementation date of June 30, 2025, or by June 30, 2026, to maintain a balance below $3 million to avoid tax.

Several withdrawal options exist, each carrying different risks and benefits depending on individual circumstances and the uncertainty surrounding the regulation’s approval and details.