Taxation Determination

TD 2004/18

Income tax: what are the thresholds and limits for superannuation amounts in 2004-2005?

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FOI status:

may be released

1. In accordance with the Income Tax Assessment Act 1936 (ITAA 1936), 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 2004 was $947.80 and the estimate for February 2003 was $900.40. This produces an indexation factor of 1.053.

3. This factor is applied against the 2003-2004 thresholds and limits. The new thresholds and limits that apply from 1 July 2004 are set out in the following paragraphs.

4. For the purposes of subsection 27A(20) of the ITAA 1936, the tax free amounts of a bona fide redundancy payment or of an approved early retirement scheme payment are:

•

$6,194 (formerly $5,882); and

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$3,097 (formerly $2,941).

5. For the purposes of subsections 82AAC(2B) and 82AAT(2B) of the ITAA 1936, the age based deduction limits for superannuation contributions by employers and eligible persons are:

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$13,934 (formerly $13,233);

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$38,702 (formerly $36,754); and

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$95,980 (formerly $91,149).

6. For the purposes of subsection 140ZD(3) of the ITAA 1936, the RBL limits are:

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Lump Sum RBL $619,223 (formerly $588,056); and

•

Pension RBL $1,238,440 (formerly $1,176,106).

7. The upper limit for determining the residual amount for the purposes of section 159SG of the ITAA 1936, that is the threshold on the post-June 1983 component of an eligible termination payment is:

•

$123,808 (formerly $117,576).

Date of effect

8. This Determination applies to the 2004-2005 income year.

Commissioner of Taxation
11 June 2004

Not previously released in draft form.

References

ATO references:
NO 2004/6290

Previous Rulings/Determinations:
TD 96/24;
TD 97/11;
TD 98/12;
TD 1999/12;
TD 2000/23;
TD 2001/15;
TD 2002/11;
TD 2003/21.

Related Rulings/Determinations:

TR 92/1
TR 92/20
TR 97/16

Subject References:
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:
TAA 1953 Pt IVAAA
ITAA 1936 27A(20)
ITAA 1936 82AAC(2B)
ITAA 1936 82AAT(2B)
ITAA 1936 140ZD(3)
ITAA 1936 159SG