Question
Q1 (Superannuation lump sum and income stream) On 14 August 2017, Tammy Gochi, aged 53, retired from her job as chief executive officer of Megacorp
Q1 (Superannuation lump sum and income stream)
On 14 August 2017, Tammy Gochi, aged 53, retired from her job as chief executive officer of Megacorp Limited to commence service as a volunteer for Whalepeace International. She received a superannuation lump sum of $160,000 which entirely comprised an element taxed in the fund. PAYG tax of $34,500 was withheld from the lump sum.
During the remainder of the 2017/18 tax year, Tammy also received a superannuation income stream benefit of $40,000 from the fund. PAYG tax of $9,780 was withheld from this amount. The entire amount was taxed in the fund.
Tammys only other income during the 2017/18 tax year was gross salary of $36,290 for the period up to the date of her retirement. PAYG tax of $9,035 was withheld by her employer. Tammy has private hospital insurance.
Required:
- Calculate Tammys taxable income for the 2017/18 tax year.
Gross salary = 36290
Super lump sum = 160,000
Sup income stream = 40,000
Total Assessable income is = 236,290
- Calculate Tammys net tax payable or refundable for the 2017/18 tax year.
Taxable income = 236,290
Tax on taxable income = 54,232 + 45% * ( 236,290 180,000 ) = 79,562.5
Add : Medicare levy = 2% * (236,290 -Low cap amount ) =
Less : PAYG tax withheld = 34,500 + 9,780 + 9,035 = 53315
Less :Lump sum tax offset =
Tax payable =
Working on Lump sum tax offset :
Tax on taxable income = 54,232 + 45%* (236,290 -180,000) = 79,562.5
Less : Tax wages = 0+19%*(36,290 18,200) = 3437.1
Add : Tax on lump sum = 15% * Low cap amount
Total lump sum =
I need to work up the Low cap amount Calculation because I order to find the Lump sum 15% and use it Medicare Levy by using 2% .Show mayor working please of the Low cap amount Calculation .Please part a answer is right and part most of the Calculation is right .Follow the same format in part b .
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started