(1) Employment termination payment

Mary Adams 45, retired from her job as an engineer with XYZ Ltd. Mary received the following payments including approved early retirement payments after 8 years with XYZ Ltd.

Gross salary from employer $170,000

Approved early retirement scheme payment $97,000

Unused annual leave $15,000

Unused long service leave $7,400

Required Advise Mary on the taxation implications of her retirement. Assume no deductions to claim. You must clearly identify any ETP tax offset. You must provide relevant cases and/or legislation.

(2) Superannuation

On 1 July 2021 Mary Adams, aged 55, retired from her job as an engineer with XYZ Ltd. Mary wishes to withdraw her Super fund. The total amount includes the following elements;

After-tax voluntary contribution $11,000

Government co-contribution $8,000

Element untaxed in the fund $4,000

Element taxed in the fund $461,000

Required Advise Mary what would be the tax consequences of withdrawing her super fund during 2020/21, including all options available to her. You must provide relevant cases and legislation.