Earlier this year, the Australian government proposed major changes to their superannuation under Division 296. These rules would have introduced a 30% tax rate on both realised and unrealised gains for balances above $3 million, with assessments beginning from 30 June 2026.

While the government has since suspended the reform, the proposal highlights important considerations for investors in that regulations can shift quickly, and preparing for change is as critical as the change itself.

These tax implications may have been proposed in another country, but they highlight a universal truth for investors everywhere - the need to be ready for unexpected shifts and to have the liquidity to adapt when they arrive.

Lessons from Division 296

Even though Division 296 paused for now, it gave investors a glimpse of what could be ahead:

• Tax liabilities may extend beyond realised gains, creating unexpected cashflow pressures.
• Superannuation members with larger balances can’t always rely on their long-term, illiquid investments to meet short-term obligations.
• The ability to raise cash, without disrupting an investment strategy, is becoming increasingly valuable.
  
  

Why liquidity matters in uncertain times

High-net-worth investors are often diversified across private markets, unlisted funds, and illiquid assets. These investments are designed for long-term wealth creation - but they are not designed for sudden exits.

Whether the challenge comes from a new tax, regulatory reform, or shifting market conditions, investors who lack liquidity may find themselves:

• Forced to sell assets under pressure.
• Exiting at the wrong time and locking in avoidable losses.
• Compromising their overall strategy just to meet short-term needs.
  
  

Private secondary markets as a solution

Liquidity mechanisms, such as Syndex’s private secondary market, allow investors to access cash when needed - without dismantling their long-term positions.

With enhanced liquidity, investors can:

• Unlock liquidity on demand by selling part of their holdings.
• Meet obligations as they arise, even in uncertain environments.
• Retain exposure to long-term assets while managing near-term pressures.
  
  

Be ready for what’s next

Division 296 may be paused, but the lesson remains: regulation is unpredictable, and markets are constantly shifting.

The investors best positioned to succeed will be those who choose funds that not only deliver strong returns but also offer clear liquidity pathways.

At Syndex, we’ve built trusted digital liquidity tools for private markets that provide flexible secondary market solutions - so when change arrives, you’re ready.