Taxation Determination

TD 2005/21

Income tax: what are the thresholds and limits for superannuation amounts in 2005-2006?

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FOI status:

may be released

Preamble

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 2005 was $992.90 and the estimate for February 2004 was $947.80. This produces an indexation factor of 1.048.

3. This factor is applied against the 2004-2005 thresholds and limits. The new thresholds and limits that apply from 1 July 2005 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:

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$6,491 (formerly $6,194); and

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$3,246 (formerly $3,097).

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:

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$14,603 (formerly $13,934);

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$40,560 (formerly $38,702); and

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$100,587 (formerly $95,980).

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

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Lump Sum RBL $648,946 (formerly $619,223); and

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Pension RBL $1,297,886 (formerly $1,238,440).

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:

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$129,751 (formerly $123,808).

Date of effect

8. This Determination applies to the 2005-2006 income year.

Commissioner of Taxation
8 June 2005

Not previously issued as a draft

References

ATO references:
NO 2004/6290

Related 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
TD 2004/18

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