Question
(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
(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 |
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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 Barbra 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.
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