Question 4 - Superannuation contributions Total marks-15 Martha, who is 67 years old, is employed by Exotic Cars Limited to show clients around the manufacturing plant. An accident at work has meant she has had to reduce her working hours to 10 hours per week. Her income for the year will be about $30,000. Provide Martha with advice on how what types of superannuation contributions can be made by her and on her behalf and what concessions are available. 04 Sourced from www.ato.gov.au Resident individuals -income tax rates 2020-22 to 2021-22 Table Income Test on this income $18,201 - $37,000 19c for each $1 over $18,200 $37,001 - $90,000 $3,572 plus 32.5c for each $1 over $37,000 $90,001 - $180,000 $20,797 plus 37c for each $1 over $90,000 $180,001 and over $54,097 plus 45c for each $1 over $180,000 The above rates do not include the Medicare levy of 2% Non-resident individuals - income tax rates 2020-22 to 2021-22 Taxable income Tax on this income 32.50 $0 - $90,000 $90,001 - $180,000 $29,250 plus 37c for each $1 over $90,000 $180.000 and over $62,550 plus 45c for each $1 over $180,000 Medicare levy thresholds The full Medicare levy is 2.0% of taxable income. A reduced Medicare levy applies where taxable income is below the thresholds in the table below: Income category No levy payable if taxable income is below Reduced lewy payable if taxable incor Is below: Taxpayers not entitled to senior and pensioners tax offset (SAPTO) Individual $22,801 $28,502 Married or sole pared $38,474* $48,092*: *For each dependent child or student, add $3,533 "For each dependent child or student, add $4,416 Medicare levy surcharge (MLS) Individuals and families on incomes above the MLS thresholds are liable to pay the MLS for any period during 2018-19 that they, or their dependents, did not have private patient hospital cover. 2018-19 Basetler Tier 1 Tier 2 Tiera Singles $90,000 or less $90,001 - $105,000 $105,001 - $140,000 $140,001 or more Families $180,000 or less $180,001 - $210,006210,001 - $280,000 $280,001 or more Rates 0.0% 1.0% 1.25% 1.5% If there is more than one dependent child, these thresholds are increased by $1,500 for each child after the first. The single threshold is indexed to average weekly ordinary times earnings and increased in $1,000 increments (rounded down). The family thresholds are double the relevant singles threshold. Indexation of the income tier thresholds in the table above has been paused until 1 July 2021. Taxation of resident minors Income sources Income threshold Tax payable (excludes Medicare le SO - $416 Nil $417 - $1,307 66% of excess over $416 $.1308 45% of entire uneared income Income from a business, employment or deceased estate Normal adult marginal rates