SUPERANNUATION CONTRIBUTIONS TAX IMPOSITION ACT 1997

SECTION 7 INDEXATION

7(1) Indexation of certain amounts for 2004-05 financial year.

Section 5 applies in relation to an indexing financial year as if each indexable amount were replaced by the amount worked out using the formula:

Previous indexable amount  X  Relevant indexation factor

where: CMPT previous indexable amount means the indexable amount for the financial year immediately before the indexing financial year. CMPT relevant indexation factor means the indexation factor for the indexing financial year.

CCH Note: From 1997/98 the indexable amounts are:

                
Financial year     $        $        $    
1997/98          1,046   73,220   88,910  
1998/99          1,084   75,856   92,111 
1999/2000        1,118   78,208   94,966 
2000/01          1,165   81,493   98,955
2001/02          1,219   85,242  103,507
2002/03          1,295   90,527  109,924
2003/04          1,355   94,691  114,981      
2004/05       1,709.20   99,710  121,075]

Note: The Superannuation Laws Amendment (Abolition of Surcharge) Act 2005 (No 102 of 2005) abolishes the surcharge for superannuation contributions and termination payments made on or after 1 July 2005. This means that thresholds and indexable amounts will not be published for subsequent financial years.

7(2) Rounding off of indexed amounts.

If an amount worked out under subsection (1) is an amount of dollars and cents:

(a) if the number of cents is less than 50 - the amount is to be rounded down to the nearest whole dollar; or

(b) otherwise - the amount is to be rounded up to the nearest whole dollar.

7(3) Indexation factor.

The indexation factor for an indexing financial year is the number calculated, to 3 decimal places, using the formula:

Index number for last quarter in current March year
---------------------------------------------------
Index number for last quarter in previous March year

where: CMPT current March year means the period of 12 months ending on 31 March immediately before the indexing financial year. CMPT previous March year means the period of 12 months immediately before the current March year.

7(4) Rounding up of indexation factor.

If the number calculated under subsection (3) for a financial year would, if it were worked out to 4 decimal places, end with a number greater than 4, the number so calculated is increased by 0.001.

7(5) Change in index numbers.

If, at any time, whether before or after the commencement of this Act, the Australian Statistician has published or publishes an index number for a quarter in substitution for an index number previously published for the quarter, the publication of the later index number is to be disregarded.

7(6)

View history reference

Indexable amounts to be published.

The Commissioner must publish before, or as soon as practicable after, the start of the 2004-05 financial year the indexable amounts as replaced under subsection (1) for that year.

View history note

7(7)

View history reference

Definitions.

In this section:

indexable amount means:

(a) an amount stated in section 5; or

(b) if that amount has previously been altered under this section - the altered amount.

indexing financial year means the 2004-05 financial year.

View history note

index number , for a quarter, means the estimate of full-time adult average weekly ordinary time earnings for the middle month of the quarter published by the Australian Statistician.

Note:

For the purposes of this section, Australian Statistician means the Australian Statistician referred to in subsection 5(2) of the Australian Bureau of Statistics Act 1975.

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