Taxation Determination

TD 2004/18

Income tax: what are the thresholds and limits for superannuation amounts in 2004-2005?

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FOI status:

may be released

Preamble
The number, subject heading, date of effect and paragraphs 1 to paragraphs 7 of this document are a 'public ruling' for the purposes of Part IVAAA of the Taxation Administration Act 1953 and are legally binding on the Commissioner.

1. In accordance with the Income Tax Assessment Act 1936 (ITAA 1936), there are a number of thresholds and limits that require indexation each year by movements in full-time adult average weekly ordinary time earnings (AWOTE).

2. The AWOTE amount is an estimate by the Australian Statistician of the full-time adult average weekly ordinary time earnings for persons in Australia. The estimate for February 2004 was $947.80 and the estimate for February 2003 was $900.40. This produces an indexation factor of 1.053.

3. This factor is applied against the 2003-2004 thresholds and limits. The new thresholds and limits that apply from 1 July 2004 are set out in the following paragraphs.

4. For the purposes of subsection 27A(20) of the ITAA 1936, the tax free amounts of a bona fide redundancy payment or of an approved early retirement scheme payment are:

$6,194 (formerly $5,882); and
$3,097 (formerly $2,941).

5. For the purposes of subsections 82AAC(2B) and 82AAT(2B) of the ITAA 1936, the age based deduction limits for superannuation contributions by employers and eligible persons are:

$13,934 (formerly $13,233);
$38,702 (formerly $36,754); and
$95,980 (formerly $91,149).

6. For the purposes of subsection 140ZD(3) of the ITAA 1936, the RBL limits are:

Lump Sum RBL $619,223 (formerly $588,056); and
Pension RBL $1,238,440 (formerly $1,176,106).

7. The upper limit for determining the residual amount for the purposes of section 159SG of the ITAA 1936, that is the threshold on the post-June 1983 component of an eligible termination payment is:

$123,808 (formerly $117,576).

Date of effect

8. This Determination applies to the 2004-2005 income year.

Commissioner of Taxation
11 June 2004

Not previously released in draft form.

References

ATO references:
NO 2004/6290

Previous Rulings/Determinations:
TD 96/24;
TD 97/11;
TD 98/12;
TD 1999/12;
TD 2000/23;
TD 2001/15;
TD 2002/11;
TD 2003/21.

ISSN: 1038-8982

Related Rulings/Determinations:

TR 92/1
TR 92/20
TR 97/16

Subject References:
age based deduction limits
approved early retirement scheme
bona fide redundancy
elective deduction limit
lump sum reasonable benefit limit
pension reasonable benefit limit

Legislative References:
TAA 1953 Pt IVAAA
ITAA 1936 27A(20)
ITAA 1936 82AAC(2B)
ITAA 1936 82AAT(2B)
ITAA 1936 140ZD(3)
ITAA 1936 159SG

TD 2004/18 history
  Date: Version: Change:
You are here 11 June 2004 Original ruling  
  18 May 2016 Withdrawn