Income Tax Assessment Act 1997



Division 307 - Key concepts relating to superannuation benefits  

Subdivision 307-F - Low rate cap and untaxed plan cap amounts  

SECTION 307-345   Low rate cap amount  

Starting amount

Your low rate cap amount for the 2007-2008 income year is $140,000.


However, if you became entitled to a rebate under the corresponding provision of the Income Tax Assessment Act 1936 , see section 307-345 of the Income Tax (Transitional Provisions) Act 1997 .

Reductions and increases

If you receive one or more *superannuation member benefits that are *superannuation lump sums in an income year, reduce your low rate cap amount for the next income year (but not below zero) by the total of the amounts that:

(a) are included in your assessable income for the first year in respect of those lump sums; and

(b) are counted towards your entitlement to a *tax offset under subsection 301-20(2) or 301-105(4) for the first year.

At the start of each income year after the 2007-2008 income year, increase your low rate cap amount by the amount (if any) by which the index amount for that income year exceeds the index amount for the previous income year.

For the purposes of subsection (3), the index amount for the 2007-2008 income year is $140,000. The index amount is then indexed annually.


Subdivision 960-M shows how to index amounts. However, annual indexation does not necessarily increase the index amount: see section 960-285 .


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