James aged 60 is currently employed on a full time basis with Sandleham Pty Ltd.  He is currently earning $150,000 p.a.  He has come to you seeking advice in relation to his superannuation contributions.  He has heard about salary sacrificing and would like to receive some more information in relation to the tax benefits of salary sacrificing.  He has worked out that he can afford to make extra contributions of approximately $9,000 on top of the SG.  He has requested that you show him the difference in tax that he will pay as a result of a $9,000 salary sacrifice arrangement.  In order to facilitate this show below the tax that he would pay now without any salary sacrifice arrangement versus the tax he would pay if he salary sacrificed an additional $9000.  Assume James has private health insurance and does not incur the Medicare levy surcharge.


Activity 12

What is the spouse offset entitlement in each of the following cases for the current income year.

Paul and Liam are in a de facto relationship.  Liam made a contribution of $4 000 to superannuation for Paul's benefit on 1 September.  Assume that Paul's total assessable income and reportable fringe benefits for current income year is $35,000.
 

Bill and Sally are married, and during the current income year, Bill contributes a total of $10 000 to a complying superannuation fund for Sally.  Assume that Sally's assessable income and reportable fringe benefits total in that year is $39,000.
 

Bill and Sally are married. Bill has a TSB of $1,800,000 and Sally has a TSB of $150,000. Bill's employer is required to contribute $30,000 in mandated contributions during the year. Bill is concerned that he is approaching the TSB limit and has asked for advice.