Superannuation Contributions Determination

SCD 2005/3

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

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FOI status:

may be released

Preamble

Superannuation Contributions Determinations do not have the force of law. Each decision made by the Australian Taxation Office is made on the merits of the individual case having regard to any relevant Rulings and Determinations.

[Note: This is a consolidated version of this document. Refer to the Tax Office Legal Database (http://law.ato.gov.au) to check its currency and to view the details of all changes.]

1. The Termination Payments Tax (Assessment and Collection) Act 1997 (TPT(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 2004/3 specifies the previous surcharge threshold for the 2004-2005 financial year as $99,710.

5. For the purposes of subsection 10(2) of the TPT(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

Footnotes

[1]

1 Please note: if enacted, amendments proposed in the Australian Government Budget Measures 2005-06 will result in no surcharge being payable in respect of termination payments made on or after 1 July 2005.

Not previously issued in draft form.

Previous Determinations: