Income tax: what is the standard indexation rate determined by the Commissioner that applies to a financial year for the purposes of calculating the Reasonable Benefits Limits (RBLs) stated in Subdivision A of Division 14 of Part III of the Income Tax Assessment Act 1936 ?

TD 96/33 states that for the purposes of valuing a pension for RBLs, the pension valuation factors (PVFs) contained in Schedule 1B of the Superannuation Industry (Supervision) Regulations 1994 are used. The PVF acts as a multiple for converting the annual amount of pension at commencement into a lump sum for the purpose of comparing it to the pension RBL.

Former Division 14 of the Income Tax Assessment Act 1936 (ITAA 1936) provided for a system of RBLs applicable to certain eligible termination payments (ETPs), superannuation pensions and annuities as well as, inter alia , the Commissioner's power to determine the extent to which the ETP, pension or annuity exceeded the recipient's RBLs.

Division 14 of the ITAA 1936 was repealed by the Superannuation Legislation Amendment (Simplification) Act 2007 , which came into effect on 1 July 2007. RBLs are no longer used to calculate taxation of superannuation amounts and no indexed RBLs have been provided since the 2006-07 income year.

TD 96/33 has no application for the 2007-08 income year and later years, and is therefore withdrawn.