Julie Phillips is the Little Pear Administration Pty Ltd Managing Director. She has been in the company for 8 years but her position is no longer needed due to a recent outsourcing strategy. She accepts the redundancy termination and is paid $200,000. The genuine redundancy part of her payment is $300 per week worked for the company. Her other taxable income in 2018-19 is $125,000. Julie has not reached preservation age.

• Work out Julie’s redundancy payment including the tax-free, taxable component and tax withheld. (Show your workings).

Non-genuine redundancy:

	WORKINGS	ANSWER
Non-genuine redundancy	$200,000 - $124,800	$75,200
Whole-of-income cap	180,000 - $125,000	$55,000
ETP cap	?	?
Concessional tax	$55,000 x 32%	$17,600
Non-concessional tax	$75,200 - $55,000 = $20,200 x 47%	$9,494

calculate ETP CAP.