Superannuation Contributions Determination

SCD 97/2

Superannuation contributions: what are the indexable amounts for the 1997-98 financial year under the Termination Payments Tax Imposition Act 1997 ?

• 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:

1. The Termination Payments Tax Imposition Act 1997 (the Act) provides that for each indexing financial year the indexable amount is to be an amount which reflects movements in full-time adult average weekly ordinary time earnings.

2. To ascertain an indexable amount, 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 estimate of full-time adult average weekly ordinary time earnings for the middle month of the quarter published by the Australian Statistician.

3. The Australian Statistician's estimate of the full-time adult average weekly ordinary time earnings for February 1997 was $696.10 and the estimate for February 1996 was $665.80. This produces an indexation factor of 1.046. This factor, when multiplied by the indexable amount for the previous year, produces the indexable amount for the current year.

4. Section 5 of the Act specifies the previous indexable amounts as $1,000; $70,000 and $85,000 respectively.

5. For the purposes of section 6 of the Act, the indexable amounts for the 1997-98 financial year are:

$1,046

$73,220

$88,910.

Commissioner of Taxation
30 July 1997

References

ATO references:
NO 97/6479-8

Related Rulings/Determinations:

SCD 97/1
SCD 97/3
SCD 97/4

Subject References:
average weekly ordinary time earnings
earnings base
financial year
indexable amount
indexation
indexation factor
minimum contribution base
superannuation contributions
surcharge
surcharge threshold
threshold

Legislative References:
TPTIA 5
TPTIA 6