Superannuation Contributions Determination

SCD 2004/4

Superannuation contributions: what are the surchargeable contributions threshold and the indexable amounts for the 2004-2005 financial year under the Superannuation Contributions Tax Imposition Act 1997 ?

This version is no longer current. Please follow this link to view the current version.

• Please note that the PDF version is the authorised version of this ruling.
  This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

FOI status:

may be released

1. The Superannuation Contributions Tax Imposition Act 1997 (SCTIA) provides that for each financial year the surchargeable contributions threshold and each indexable amount are to be amounts which reflect movements in full-time adult average weekly ordinary time earnings (AWOTE).

Surchargeable contributions threshold

2. In accordance with subsection 6(2) of the SCTIA, the surchargeable contributions threshold is the amount worked out using the formula:

previous threshold * indexation factor * (current charge percentage / previous charge percentage)


3. The previous threshold is the surchargeable contributions threshold for the financial year immediately before the relevant financial year. For the purpose of this Determination, the previous threshold as advised by Superannuation Contributions Determination SCD 2003/4 is $4,058.

4. The indexation factor is worked out under subsections 9(4) and 9(5) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997. This 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. The Australian Statistician's AWOTE estimate for February 2004 was $947.80 and the estimate for February 2003 was $900.40. This produces an indexation factor of 1.053.

5. For the 2004-2005 financial year, the current charge percentage - the number that is the employer's charge percentage under subsection 19(2) of the Superannuation Guarantee (Administration) Act 1992 for the relevant financial year - is 9. The previous charge percentage - the number that is the employer's charge percentage under subsection 19(2) of that Act, for the financial year immediately before the relevant financial year - is also 9.

6. Applying the formula in subsection 6(2) of the SCTIA, the surchargeable contributions threshold for the 2004-2005 financial year is:

•      $4,273.

Indexable amounts

7. In accordance with subsection 7(1) of the SCTIA, each indexable amount is worked out using the formula:

previous indexable amount * relevant indexation factor


8. The previous indexable amount is the indexable amount for the financial year immediately before the indexing financial year. The indexing financial year is the 2004-2005 financial year or a later financial year. For the purpose of this Determination, the previous indexable amounts as set out in subsection 5(1AA) of the SCTIA are $94,691 (lower income amount) and $114,981 (higher income amount).

9. The relevant indexation factor is the indexation factor for the indexing financial year and is calculated in the same way as described in paragraph 4 of this Determination. The factor is 1.053.

10. For the purpose of subsection 5(1AA) of the SCTIA, the indexable amounts (as calculated under section 7) for the 2004-2005 financial year are:

•      $99,710 (the lower income amount); and

•      $121,075 (the higher income amount).

11. These indexable amounts are relevant for working out the rate of the superannuation contributions surcharge that applies to a member in a particular year under section 5 of the SCTIA. Superannuation Contributions Determination SCD 2004/5 provides details of the calculation of the amount represented by 'A' in the first formula contained within subsection 5(1) of the SCTIA.

Date of effect

12. This Determination applies to the 2004-2005 financial year.

Commissioner of Taxation
18 June 2004

Not previously issued in draft form.

Previous Determinations:

SCD 97/1,

SCD 97/4,

SCD 98/3,

SCD 98/6,

SCD 1999/1,

SCD 1999/4,

SCD 2000/4,

SCD 2001/4,

SCD 2002/4, and

SCD 2003/4.

References

ATO references:
NO 2004/6292

Related Rulings/Determinations:

SCD 2004/1
SCD 2004/2
SCD 2004/3
SCD 2004/5

Subject References:
average weekly ordinary time earnings
current charge percentage
financial year
higher income amount
indexable amount
indexation
indexation factor
lower income amount
previous charge percentage
superannuation contributions
surcharge
surcharge threshold
surchargeable contributions threshold
threshold

Legislative References:
SCT(AC)A 1997 9(4)
SCT(AC)A 1997 9(5)
SCTIA 1997 5
SCTIA 1997 5(1)
SCTIA 1997 5(1AA)
SCTIA 1997 6(1)
SCTIA 1997 6(2)
SCTIA 1997 7
SCTIA 1997 7(1)
SCTIA 1997 19(2)
SGAA 1992