Superannuation Contributions Determination

SCD 2005/1

Superannuation contributions: what is the surcharge threshold for the 2005-2006 financial year under the Superannuation Contributions Tax (Assessment and Collection) Act 1997?

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FOI status:

may be released

Preamble

1. The Superannuation Contributions Tax (Assessment and Collection) Act 1997 (SCT(AC)A) 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).^[1]

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 2005 was $992.90 and the estimate for February 2004 was $947.80. This produces an indexation factor of 1.048. 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 2004/1 specifies the surcharge threshold for the 2004-2005 financial year as $99,710.

5. For the purposes of subsection 9(2) of the SCT(AC)A, the surcharge threshold for the 2005-2006 financial year is:

•

$104,496.

Date of effect

6. This Determination applies to the 2005-2006 financial year.

Commissioner of Taxation
8 June 2005

Not previously issued in draft form

Previous Determinations

SCD 97/1

SCD 98/3

SCD 1999/1

SCD 2000/1

SCD 2001/1

SCD 2002/1

SCD 2003/1

SCD 2004/1

References

ATO references:
NO 2004/6292

Related Rulings/Determinations:

SCD 2005/2
SCD 2005/3
SCD 2005/4
SCD 2005/5

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

Legislative References:
SCT(AC)A 1997
SCT(AC)A 1997 9(2)