Superannuation (Government Co-Contribution for Low Income Earners) Act 2003

PART 2 - GOVERNMENT CO-CONTRIBUTION IN RESPECT OF LOW INCOME EARNERS  

Division 2 - Amount of the Government co-contribution  

SECTION 10A   INCREASES IN LOWER AND HIGHER INCOME THRESHOLD  

10A(1)    

This section provides for:

(a) indexation of the lower income threshold for the 2007-08 income year and later income years (apart from the 2010-11, 2011-12 and 2012-13 income years); and

(b) increases in the higher income threshold for the 2007-08 income year and each later income year (apart from the 2010-11, 2011-12 and 2012-13 income years) equal to the indexation increase in the lower income threshold for that year.

10A(2)    

The lower income threshold for an income year is:

(a) for the 2003-04 income year - $27,500; or

(b) for the 2004-05 income year or a later income year before the 2007-08 income year - $28,000; or

(c) for the 2007-08 income year - $28,000 multiplied by the indexation factor for that income year; or

(d) for a later income year - the amount of the lower income threshold for the previous income year multiplied by the indexation factor for that later income year.

10A(3)    

The higher income threshold for an income year is:

(a) for the 2003-04 income year - $40,000; or

(b) for the 2004-05 income year or a later income year before the 2007-08 income year - $58,000; or

(c) for the 2007-08 income year or a later income year before the 2012-13 income year - the sum of:

(i) the lower income threshold for that income year; and

(ii) $30,000; or

(d) for the 2012-13 income year or a later income year - the sum of:

(i) the lower income threshold for that income year; and

(ii) $ 15,000.

10A(4)    
If the lower income threshold for an income year is an amount of dollars and cents:

(a) if the number of cents is less than 50 - the lower income threshold is to be rounded down to the nearest whole dollar; or

(b) otherwise - the lower income threshold is to be rounded up to the nearest whole dollar.

10A(5)    

The indexation factor for an income year is the number calculated, to 3 decimal places, using the formula:

Index number for the last quarter in current year   Index number for the last quarter in previous year

where:

current year
means the period of 12 months ending on 31 December immediately before the income year for which the lower income threshold is being calculated.

index number
, for a quarter, means the estimate of full-time adult average weekly ordinary time earnings for the middle month of the quarter published by the Australian Statistician.

previous year
means the period of 12 months immediately before the current year.

10A(5A)    

Despite subsection (5), the indexation factor for the 2010-11, 2011-12 and 2012-13 income years is 1.

10A(6)    
If the number calculated under subsection (5) for a financial year would, if it were worked out to 4 decimal places, end with a number greater than 4, the number so calculated is increased by 0.001.

10A(7)    
If at any time, whether before or after the commencement of this Act, the Australian Statistician has published or publishes an index number for a quarter in substitution for an index number previously published for the quarter, the publication of the later index number is to be disregarded.

10A(8)    
The Commissioner must publish before, or as soon as practicable after, the start of the 2007-08 income year, and before the start of each later income year, the lower income threshold and the higher income threshold for the income year.