Superannuation Contributions Determination

SCD 98/5

Superannuation contributions: what is the surcharge threshold for the 1998-99 financial year under the Termination Payments Tax (Assessment and Collection) Act 1997?

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FOI status:

1. The Termination Payments Tax (Assessment and Collection) Act 1997 (the Act) provides that for each financial year the surcharge threshold is to be an amount which reflects movements in full-time adult average weekly ordinary time earnings (AWOTE).

2. To ascertain the surcharge threshold, 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 AWOTE estimate for the middle month of the quarter published by the Australian Statistician.

3. The Australian Statistician's AWOTE estimate for February 1998 was $721.30 and the estimate for February 1997 was $696.10. This produces an indexation factor of 1.036. This factor, when multiplied by the surcharge threshold for the previous year, produces the surcharge threshold for the current year.

4. Superannuation Contributions Determination SCD 97/3 specified the previous surcharge threshold for the 1997-98 financial year as $73,220.

5. For the purposes of subsection 10(2) of that Act, the surcharge threshold for the 1998-99 financial year is:

Commissioner of Taxation
3 June 1998

Not previously released in draft form

References

ATO references:
NO 97/6479-8

Related Rulings/Determinations:

SCD 98/3
SCD 98/4
SCD 98/6

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

Legislative References:
TPT(AC)A 10(1)
TPT(AC)A 10(2)