Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 (81 of 2016)
Schedule 11 Dictionary
Income Tax Assessment Act 1997
6 Section 960-285
Repeal the section, substitute:
960-285 Indexation - superannuation and employment termination
(1) This section applies in relation to the amounts listed at items 8 to 12 in section 960-265.
Indexing amounts
(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 theindexation factor increases this to an indexed amount of $146,000, the indexed amount is rounded down to $145,000.
(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.
(4) You do not index the amount if the *indexation factor is 1 or less.
Indexation factor
(5) For indexing an amount, its indexation factor is:
where:
base quarter means:
(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.
(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 numberand rounding amount
(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
|
Column 2
|
Column 3
|
|
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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