Covide, a resident aged 57, received a payment under a bona fide redundancy scheme of $88,000 on 15 January 2020. He had completed 9 years and 6 months of service with his employer.

Required

Determine, showing calculations, how much (if any) of the $88,000 would be included in Covides assessable income for the year ended 30 June 2020. If an amount is to be included briefly describe how it will be taxed.

4 marks