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Thomas Young started working for Debt Administration Pty Ltd on 27 May 2008. He recently turned 60 years old and will be retiring from Debt

Thomas Young started working for Debt Administration Pty Ltd on 27 May 2008. He recently turned 60 years old and will be retiring from Debt Administration Pty Ltd on 11 January 2019. His taxable income up to the retirement date is $100,000 and his accrued annual leave is $3,400. Thomas receives $76,600 as gratuity for his years of service.

  1. Calculate the tax payable for Thomas ETP.

  1. What would be the difference in Thomas ETP if he started employment before August 1983? Explain your answer.

  1. What is the consequence of paying the ETP over 12 months after the termination date? What would be the tax liability of Thomas employment termination payment?

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