What are the tax thresholds

what are the tax thresholds

TD 96/24

FOI status: may be released

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 . is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

[Note: This is a consolidated version of this document. Refer to the Tax Office Legal Database (http://law.ato.gov.au) to check its currency and to view the details of all changes.]

1. In accordance with the Income Tax Assessment Act 1936 (the Act), there are a number of

thresholds and limits that require indexation each year by movements in full-time adult Average Weekly Ordinary Time Earnings (AWOTE).

2. The AWOTE amount is an estimate by the Australian Statistician of the full-time adult average weekly ordinary time earnings for persons in Australia. The estimate for February 1996 was $665.80 and the estimate for February 1995 was $639.90. This produces an indexation factor of 1.040.

3. This factor is applied against the 1995/96 thresholds and limits. The new thresholds and limits that will apply from 1 July 1996 are as follows:

4. Subsection 27A(20) - the tax free amount of a bona fide redundancy payment and approved early retirement scheme payment: $4,180 to $4,348 $2,090 to $2,174.

5. Subsections 82AAC(2B) and 82AAT(2B)- the age based deduction limits for superannuation contributions by employers and eligible persons: $9,405 to $9,782 $26,125 to $27,170 $64,790 to $67,382.

6. Subsection 82AAC(2E) - the elective deduction limit for employer superannuation contributions: $26,125 to $27,170.

Lump Sum RBL

$418,000 to $434,720

Source: law.ato.gov.au

Category: Taxes

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