005/2006 Financial Facts

Tax, Superannuation & Social Security Rates 2005/2006

Tax rates, Tax Offsets, Motor vehicle rates, Super Max Deduction, Super RBL’s, Super Preservation, ETP’s, Lump Sum Death Benefits, Life Expectancy, Super Allocated Pension, Super Term Allocated Pension, Age Pension.

See important Disclaimer at the end of this page

TAX RATES 2005-06 TAX RATES 2006-07

Taxable income	Tax on this income	Taxable income	$Tax on this income
$0 – $6,000	Nil	$0 – $6,000	Nil
$6,001 – $21,600	15c for each $1 over $6,000	$6,001 – $25,000	15%....
$21,601 - $63,000	$2,340 plus 30c for each $1 over $21,600	$25,001 - $75,000	$2,850 + 30c > $25,000
$63,001 – $95,000	$14,760 plus 42c for each $1 over $63,000	$75,001 – $150,000	$17,850 + 40c > $75,000
Over $95,000	$28,200 plus 47c for each $1 over $95,000	Over $150,000	$47,850 + 45c > $150,000

The above rates do notinclude the Medicare levy of 1.5%.

TAX OFFSETS

Tax offsets reduce the tax payable. Tax offsets based on taxable income levels apply to:

individuals on low incomes below $27,475 (2004/2005 rate, the 2005/2006 not available at time of writing)
individuals who receive certain Australian government allowances and payments
senior Australians.

Other tax offsets apply to people with dependants, those living in remote areas and those who receive particular types of income or incur particular expenses.

	2000/01	2001/02,03,04, 05,06
Tax rate for general companies:	34%	30%
Tax rate for Insurance Companies:	34%	30%
Tax rate for Friendly Societies:	33%	30%

MOTOR VEHICLE CENTS PER KILOMETRE (2005/2006 Rates)

For FBT car rates see FBT checklist

Engine capacity		Cents per kilometre
Ordinary car	Rotary engine car	2005-06 income year
1600cc (1.6 litre) or less	800cc (0.8 litre) or less	55 cents
1601cc - 2600cc (1.601 litre - 2.6 litre)	801cc - 1300cc (0.801 litre - 1.3 litre)	66 cents
2601cc (2.601 litre) and over	1301cc (1.301 litre) and over	67 cents

2005/2006 SUPERANNUATION THRESHOLDS

Revised October Annually
Superannuation Guarantee
9 per cent of ‘ordinary time earnings’

Age-based deduction limits for employer contributions
Under 35	$14,603
35 - 49	$40,560
50 and Over	$100,587

Reasonable Benefit Limits
Lump Sum	$648,946
Pension	$1,297,886

Superannuation Contributions Tax ('Surcharge') – NOT APPLICABLE AS OF 1.7.05

SUPER- REASONABLE BENEFIT LIMITS (RBL’S)–amounts counted for RBL’s

ETP Component	RBL Amount	Qualifying Portion
Undeducted	Nil	Nil
Concessional	Nil	Nil
Pre 1/7/83 – Super ETP	100%	100%
Pre 1/7/83 – Employer ETP	Nil	100%
Post 30/6/83 – Taxed	100%	100%
Post 30/6/83 – untaxed	85%	100%
Post 30/6/94 – Invalidity	Nil	Nil
CGT Exempt	100%	100%

SUPER - PRESERVATION RULES

Retirement after preservation age see below:
Termination of Employment after 60
Attaining age 65
Permanent incapacity, compassionate grounds, death, financial hardship for 6months consecutively
Upon departure for certain temporary residents

COMPULSORY PAYMENTS OF BENEFITS:

65 TO <75 member not gainfully employed for at least 240hrs in the most recent financial year (ending 30 June)*
75+ before 1/7/2004 member ceases to be gainfully employed for at least 30 hrs each week.
75+ after 30/6/2004 benefits to be paid immediately consider forms of pensions, allocated, complying, hybrid.

Increase to preservation ages for retirement:

Date Of Birth
Before 01/07/1960	55
1/07/60-30/06/61	56
1/07/61-30/06/62	57
1/07/62-30/06/63	58
1/07/63-30/06/64	59
1/07/64 or after	60

ETP THRESHOLDS

ETP Component	Amount included	Maximum rate of tax (includes Medicare levy)
Pre 1 July 1983	5%	Marginal
Post 30 June 1983 taxed
Pre 55 years	100%	21.5%
Pre 55 years, untaxed element 1	00%	31.5%
55 years plus, taxed element $0 - $123 808	Nil	N/A
55 years plus, taxed element > $123 808	100%	16.5%
55 years plus, untaxed element $0 - $123 808	100%	16.5%
55 years plus, untaxed element > $123 808	100%	31.5%
Undeducted contributions	Nil	N/A
Post June 1994 invalidity component	Nil	N/A
CGT exempt component	Nil	N/A
Excessive component	100%	48.5%

LUMP SUM DEATH BENEFITS

Paid to Dependant	Tax Treatment
Up to Deceased ‘s Pension RBL	Nil
Above the Deceased ‘s Pension RBL	Taxed up to 47% depending – call an adviser

LIFE EXPECTANCY-200-2002, For income streams commencing from 1/1/05. From 20/09/04 for complying fixed term, or term allocated or to determine the maximum guarantee period for complying life time income streams.

Age	M	F	Age	M	F	Age	M	F
50	30.39	34.51	65	17.7	21.15	80	8.24	9.98
55	25.92	29.91	70	14.08	17.08	85	6.11	7.28
60	21.66	25.44	75	10.9	13.33	90	4.74	5.33

Note the years in between are not noted, please call us if you require it.

ALLOCATED PENSION–MIN/MAX PVS–The amount is calculated at the commencement and then at 1.7 each year.

Age	Min	Max	Age	Min	Max
50	21.5	9.9	75	11.3	4.3
55	19.8	9.6	80	9.1	1
60	17.8	9	85	7.1	1
65	15.7	8.1	90	5.5	1

Note the years in between are not noted, please call us if you require it.

TERM ALLOCATED PENSION – PAYMENT FACTORS

Term Remaining	Payment Factor	Term Remaining	Payment Factor
40	21.36	20	14.21
30	18.39	10	8.32
		1	1

Note the years in between are not noted, please call us if you require it.

AGE PENSION

Effective 1 July 2004 (revised quarterly)

Basic rate (per fortnight)
Single	$488.90 (maximum)
Couple (each)	$408.20 (maximum per person)

Note: Income test figures higher for pensioners with children or who pay private rent.

	Allowable income	Allowable assets
		Lower limit	Upper limit
Single, homeowner	Up to $124 pf	$157,000	$322,000
Single, non-homeowner		$270,500	$435,500
Couple, homeowner	Up to $220 pf	$223,000	$497,500
Couple, non homeowner		$336,500	$611,000

Note: For full payments, per fortnight. These amounts are higher for pensioners who pay private rent.
See centrelink form more information, click here, amounts payable are subject to conditions.

Page last updated: Wednesday 28th June 2006.

DISCLAIMER: The information contained in this publication is current at the date of printing (13 July 2005). Whilst all care has been taken in its preparation, Mercia accepts no liability for actions taken on the basis of information in this publication nor for any error in, or omission from, the publication. Changes may have occurred resulting in this information being out of date, consequently this information should not be relied upon in making decisions, and as a result Mercia disclaims any liability arising from any decisions made relying upon information contained on this page and website.

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