Income Tax Assessment Act 1997
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Hide history noteSECTION 960-285 Indexation - superannuation and employment termination 960-285(1)
This section applies in relation to the amounts listed at items 8 to 12 in section 960-265 .
Indexing amounts
960-285(2)
You index the amount by:
(a) first, multiplying its base amount mentioned in subsection (3) by its *indexation factor mentioned in subsection (5); and
(b) next, rounding the result in paragraph (a) down to the nearest multiple of its *rounding amount.
Example 1:
An amount of $140,000 is to be indexed, with a rounding amount of $5,000. If the indexation factor increases this to an indexed amount of $143,000, the indexed amount is rounded back down to $140,000.
Example 2:
An amount of $140,000 is to be indexed, with a rounding amount of $5,000. If the indexation factor increases this to an indexed amount of $146,000, the indexed amount is rounded down to $145,000.
960-285(3)
The amount (the base amount ) for an amount to which this section applies is:
(a) unless paragraph (b) applies - the amount for the 2007-2008 income year or *financial year; or
(b) if the amount is mentioned in item 9 or 10A in section 960-265 - the amount for the 2017-2018 financial year.
960-285(4)
You do not index the amount if the *indexation factor is 1 or less.
Indexation factor
960-285(5)
For indexing an amount, its indexation factor is:
| *Index number mentioned in subsection (7) for the *quarter ending on 31 December just before the start of the relevant income year or *financial year | ||
| *Index number mentioned in subsection (7) for the base quarter |
where:
(a) unless paragraph (b) applies - the quarter ending on 31 December 2006; or
(b) if the amount is mentioned in item 9 or 10A in section 960-265 - the quarter ending on 31 December 2016.
960-285(6)
You work out the *indexation factor mentioned in subsection (5) to 3 decimal places (rounding up if the fourth decimal place is 5 or more).
Index number and rounding amount
960-285(7)
For indexing an amount to which this section applies:
(a) the index number for a *quarter is set out in column 2 of the relevant item in the following table; and
(b) the rounding amount is set out in column 3 of that item.
| Concepts for indexing rounded caps | |||
| Item |
Column 1
Item in section 960-265 |
Column 2
Index number |
Column 3
Rounding amount |
| 1 | Items 8, 10, 11 and 12 | the *index number mentioned in subsection 960-280(4) (which is about average weekly ordinary time earnings) | $5,000 |
| 2 | Item 9 (concessional contributions cap) | the *index number mentioned in subsection 960-280(4) (which is about average weekly ordinary time earnings) | $2,500 |
| 3 | Item 10A (general transfer balance cap) | the *index number mentioned in subsection 960-280(1) (which is about the CPI) | $100,000 |
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