Taxation Determination
TD 2006/42
Income tax: what are the thresholds and limits for superannuation amounts in 2006-2007?
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Ruling
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 2006 was $1037.50 and the estimate for February 2005 was $992.90. This produces an indexation factor of 1.045.
3. This factor is applied against the 2005-2006 thresholds and limits. The new thresholds and limits that apply from 1 July 2006 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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- $6,783 (formerly $6,491); and
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- $3,392 (formerly $3,246).
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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- $15,260 (formerly $14,603);
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- $42,385 (formerly $40,560); and
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- $105,113 (formerly $100,587).
6. For the purposes of subsection 140ZD(3) of the ITAA 1936, the RBL limits are:
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- Lump sum RBL $678,149 (formerly $648,946); and
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- Pension RBL $1,356,291 (formerly $1,297,886).
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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- $135,590 (formerly $129,751).
8. This Determination applies to the 2006-2007 income year.
Commissioner of Taxation
31 May 2006
Not previously issued as a draft
References
ATO references:
NO 2004/6290
Previous Rulings/Determinations:
TD 96/24
TD 97/11
TD 98/12
TD 1999/27
TD 2000/23
TD 2001/15
TD 2002/11
TD 2003/21
TD 2004/18
TD 2005/21
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
ITAA 1936 27A(20)
ITAA 1936 82AAC(2B)
ITAA 1936 82AAT(2B)
ITAA 1936 140ZD(3)
ITAA 1936 159SG
| Date: | Version: | Change: | |
| You are here | 31 May 2006 | Original ruling | |
| 18 May 2016 | Withdrawn |