The following question is based on the material in Chapter 5 of the textbook Prepare Tax Documentation for Individuals 17th edition (Termination, Medicare Levy Surcharge, whole-of-income cap) Sid Galen is a single resident tax payer aged 59. On 15April 2020, it was mutually agreed that his appointment as head coach of the Lesser Easter Sydney AFL team would be terminated. On termination, Sid received the following: Unused Annual Leave(post 17/8/93) $6800 Severance Payment(including $31255 PAYG tax withheld) $167000 Reportable fringe benefits (The club allowed Sid to keep some air tickets that had been booked) $9300 Sid had received a gross salary of $120000 during the year up until the date of termination (PAYG tax withheld $41000). Sid has no private health insurance and does not have any dependent children.

Calculate Sid's taxable income for the 2019/20 tax year.

Calculate tax payable or refundable for the 2019/20 year.

Answer to Q-5.17 (Termination, Medicare Levy Surcharge, whole-of-income cap) Note- Please show all workings where necessary and you may use additional space below Please write your workings/explanations and answers in Blue cells Sid Gallen is a single resident, aged 59 Receipt Items Write your Reasons or Workings (if applicable) Enter receipt amount here $ Unused Annual Leave (post 17/08/93) Severance Payment (including $31 255 PAYG withheld) Reportable Fringe Benefit Gross salary PAYG tax withheld Taxable income Receipt Amount $ 6,800.00 167,000.00 9,300.00 120,000.00 41,000.00 Taxon Taxable income $ 0 Add: Medicare Levy (if applicable) Add: Medicare Levy Surcharge (if applicable) Less: Tax Offsets (if any) Less: Life Benefit ETP Tax Offset* Less: PAYG tax withheld Less: PAYG tax withheld Tax Payable/(Refundable) *Show your working 31,255.00 41,000.00 Additional Workings (if any) Hint: 180,000 - 126,800 - 53,200 Whole-of-income Cap is Excess on cap is Working LIFE BENEFIT ETP TAX OFFSET Tax on Taxable income Less: Tax on Salary & Leave Less: Excess cap Less: Tax on Life Benefit ETP