Superannuation Contributions Determination

SCD 1999/1

Superannuation contributions: what is the surcharge threshold for the 1999-2000 financial year under the Superannuation Contributions Tax (Assessment and Collection) Act 1997?

may be releasedI 1018819

1. The Superannuation Contributions Tax (Assessment and Collection) Act 1997 (the Act) provides that for each financial year the surcharge threshold is to be an amount which reflects movements in full-time adult average weekly ordinary time earnings (AWOTE).

2. To ascertain the surcharge threshold, an indexation factor is calculated by dividing the index number for the last quarter in the current March year by the index number for the last quarter in the previous March year. The index number for a quarter is the AWOTE estimate for the middle month of the quarter published by the Australian Statistician.

3. The Australian Statistician's AWOTE estimate for February 1999 was $743.80 and the estimate for February 1998 was $721.30. This produces an indexation factor of 1.031. This factor, when multiplied by the surcharge threshold for the previous year, produces the surcharge threshold for the current year.

4. Superannuation Contributions Determination SCD 98/3 specifies the surcharge threshold for the 1998-99 financial year as $75,856.

5. For the purposes of subsection 9(2) of the Act, the surcharge threshold for the 1999-2000 financial year is:

Commissioner of Taxation
19 May 1999

Not previously released in draft form

97/6479-8

SCD 97/1
SCD 98/3
SCD 1999/2
SCD 1999/3
SCD 1999/4

average weekly ordinary time earnings
earnings base
financial year
indexation
indexation factor
minimum contribution base
superannuation contributions
surcharge
surcharge threshold
threshold

SCT(AC)A 9(1)
SCT(AC)A 9(2)