Superannuation Contributions Determination

SCD 97/1

Superannuation contributions: what is the surcharge threshold for the 1997-98 financial year under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 ?

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FOI status:

1. The Superannuation Contributions Tax (Assessment and Collection) Act 1997 (the Act) provides that for each financial year the surcharge threshold is to be an amount which reflects movements in full-time adult average weekly ordinary time earnings.

2. To ascertain the surcharge threshold, an indexation factor is calculated by dividing the index number for the last quarter in the current March year by the index number for the last quarter in the previous March year. The index number for a quarter is the estimate of full-time adult average weekly ordinary time earnings for the middle month of the quarter published by the Australian Statistician.

3. The Australian Statistician's estimate of the full-time adult average weekly ordinary time earnings for February 1997 was $696.10 and the estimate for February 1996 was $665.80. This produces an indexation factor of 1.046. This factor, when multiplied by the surcharge threshold for the previous year, produces the surcharge threshold for the current year.

4. Subsection 9(1) of the Act specifies the surcharge threshold for the 1996-97 financial year as $70,000.

5. For the purposes of subsection 9(2) of the Act, the surcharge threshold for the 1997-98 financial year is: $73,220.

Commissioner of Taxation
30 July 1997

References

ATO references:
NO 97/6479-8

Related Rulings/Determinations:

SCD 97/2
SCD 97/3
SCD 97/4

Subject References:
average weekly ordinary time earnings
earnings base
financial year
indexation
indexation factor
minimum contribution base
superannuation contributions
surcharge
surcharge threshold
threshold

Legislative References:
SCT(AC)A 9(1)
SCT(AC)A 9(2)