Taxation Laws Amendment (Superannuation) Act 1992 (208 of 1992)
Part 2 AMENDMENT OF THE INCOME TAX ASSESSMENT ACT 1936
Division 2 Amendments relating to limits for deductions for contributions to superannuation funds
5 Deductions for superannuation contributions by eligible persons
Section 82AAT of the Principal Act is amended by omitting subsection (2) and substituting the following subsections:
"(2) The total of the deductions allowable to a taxpayer under this section for a year of income must not exceed the lesser of the following:
(a) the sum of:
(i) $3,000; and
(ii) 75% of the amount (if any) by which the total amount of the contributions exceeds $3,000;
(b) the taxpayer's deduction limit for the year of income (worked out under subsection (2A)).
"(2A) A taxpayer's deduction limit for a year of income is worked out:
(a) by identifying the day in the year of income, or the last day in the year of income, on which the taxpayer made a contribution to a fund, where a deduction would have been allowable to the taxpayer under this section in respect of the contribution (assuming that subsections (1A) and (2) had not been enacted); and
(b) by working out the age reached by the taxpayer as at the end of that day; and
(c) if the year of income is the 1994-95 year of income-by applying the following table:
Age in years Deduction limit
under 35 $ 9,000
35 to 49 $25,000
50 and over $62,000 ; and
(d) if the year of income is a later year of income-by applying the table subject to the indexation arrangements set out in subsection (2B).
"(2B) The table in subsection (2A) applies for the 1995-96 year of income as if each indexable amount were replaced by the amount worked out using the formula:
Indexation factor x Previous indexable amount
'Indexation factor' means the indexation factor for the year of income worked out under section 159SG;
'Previous indexable amount' means the indexable amount concerned for the previous year of income.
"(2C) In subsection (2B):
'indexable amount' means:
(a) an amount of $9,000, $25,000 or $62,000 specified in the table in subsection (2A); or
(b) if any such amount has previously been altered under subsection (2B)-the altered amount.".