Q11.5.5

(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.

My working for both parts ,can you check if they right or wrong

Required:

1. 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

2. 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 - 180,000) = 1125.8

Less : PAYG tax withheld = 34,500 + 9,780 + 9,035 = 53315

Less :lump sum tax offset = 103,125.4

Tax payable = -75752.1

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% * 180,000 = 27,000

Total = 103,125.4