A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

INCOME TAX ASSESSMENT ACT 1997

CHAPTER 6 - THE DICTIONARY  

PART 6-1 - CONCEPTS AND TOPICS  

Division 960 - General  

Subdivision 960-M - Indexation  

Operative provisions

SECTION 960-285  Indexation - superannuation and employment termination  

 View history reference

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
 View history reference


(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)  

 View history reference
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)  

 View history reference
You do not index the amount if the *indexation factor is 1 or less.

Indexation factor

960-285(5)  

 View history reference
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:

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.

960-285(6)  

 View history reference
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
ItemColumn 1
Item in section 960-265
Column 2
Index number
Column 3
Rounding amount
1Items 8, 10, 11 and 12the *index number mentioned in subsection 960-280(4) (which is about average weekly ordinary time earnings)$5,000
2Item 9 (concessional contributions cap)the *index number mentioned in subsection 960-280(4) (which is about average weekly ordinary time earnings)$2,500
3Item 10A (general transfer balance cap)the *index number mentioned in subsection 960-280(1) (which is about the CPI)$100,000


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page