Taxation Determination

TD 2002/11

Income tax: what are the thresholds and limits for superannuation amounts in 2002-2003?

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FOI status:

may be released

1. In accordance with the Income Tax Assessment Act 1936 (the Act), there are a number of thresholds and limits that require indexation each year by movements in full-time adult Average Weekly Ordinary Time Earnings (AWOTE).

2. The AWOTE amount is an estimate by the Australian Statistician of the full-time adult average weekly ordinary time earnings for persons in Australia. The estimate for February 2002 was $860.50 and the estimate for February 2001 was $810.60. This produces an indexation factor of 1.062.

3. This factor is applied against the 2001-2002 thresholds and limits. The new thresholds and limits that apply from 1 July 2002 are set out in the following paragraphs.

4. For the purposes of subsection 27A(20) of the Act, the tax free amounts of a bona fide redundancy payment or of an approved early retirement scheme payment are:

$5,623 (formerly $5,295)

$2,812 (formerly $2,648)

5. For the purposes of subsections 82AAC(2B) and 82AAT(2B) of the Act, the age based deduction limits for superannuation contributions by employers and eligible persons are:

$12,651 (formerly $11,912)

$35,138 (formerly $33,087)

$87,141 (formerly $82,054)

6. For the purposes of subsection 140ZD(3) of the Act, the RBL limits are:

Lump Sum RBL $562,195 (formerly $529,373)

Pension RBL $1,124,384 (formerly $1,058,742)

7. For the year ended 30 June 2003 the upper limit for determining the residual amount for the purposes of section 159SG of the Act, i.e., the threshold on the post-June 1983 component of an ETP is:

$112,405 (formerly $105,843).

Commissioner of Taxation
24 May 2002

Not previously released in draft form.

References

ATO references:
NO 96/4342-7

Related Rulings/Determinations:

TD 96/24
TD 97/11
TD 98/12
TD 1999/12
TD 2000/23
TD 2001/15

Subject References:
asset improvement
age based deduction limits
approved early retirement scheme
bona fide redundancy
elective deduction limit
lump sum reasonable benefit limit
pension reasonable benefit limit

Legislative References:
ITAA 1936 27A(20)
ITAA 1936 82AAC(2B)
ITAA 1936 82AAT(2B)
ITAA 1936 140ZD(3)
ITAA 1936 159SG