Question
Elon, 55, has a remuneration package of $90,000 per annum. He is to receive a $10,000 pay increase for the year and is considering salary
Elon, 55, has a remuneration package of $90,000 per annum. He is to receive a $10,000 pay increase for the year and is considering salary sacrificing this into his super.
Exclude Medicare Levy Surcharge
Required:
- Show Elon the implications of contributing the pay increase into super as an after-tax
contribution. (3 marks)
- Show Elon the implications of contributing the pay increase into super as a salary
sacrifice contribution. (3 marks)
- Explain the differing results. (2 marks)
- If Elon has a home loan of $260,000, at 2.5% pa, which strategy would you recommend: salary sacrifice the pay rise into super, receive the pay rise, or use it to
reduce his mortgage? Include a discussion explaining your recommendation? (2 marks)
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Management Of Islamic Finance
Authors: M. Kabir Hassan, Mamunur Rashid
1st Edition
1787564045, 978-1787564046
