a. Keith is age 35 and earns $110,000 p.a. His employer contributes 12% of this salary...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
a. Keith is age 35 and earns $110,000 p.a. His employer contributes 12% of this salary to his nominated superannuation fund each year (this includes the employer's mandatory superannuation guarantee contributions). Keith would like to salary sacrifice additional contributions into superannuation. i. Describe, in your own words how salary sacrifice to superannuation works, including from a cashflow and taxation perspective? (4 marks) What is the maximum amount that Keith can salary sacrifice to superannuation to stay within the concessional contribution limit? Show your workings (4 marks) ii. Concessional and non-concessional superannuation contributions b. Sonia contributed $110,000 to superannuation as a non-concessional contribution in 2021/22. 111. IV. Outline the non-concessional contribution bring forward rules in your own words (3 marks) Determine whether Sonia can contribute a further $150,000 in 2021/22. Explain your answer, including any taxation consequences. (4 marks) Show your workings. Full marks will not be awarded if workings are not provided. a. Keith is age 35 and earns $110,000 p.a. His employer contributes 12% of this salary to his nominated superannuation fund each year (this includes the employer's mandatory superannuation guarantee contributions). Keith would like to salary sacrifice additional contributions into superannuation. i. Describe, in your own words how salary sacrifice to superannuation works, including from a cashflow and taxation perspective? (4 marks) What is the maximum amount that Keith can salary sacrifice to superannuation to stay within the concessional contribution limit? Show your workings (4 marks) ii. Concessional and non-concessional superannuation contributions b. Sonia contributed $110,000 to superannuation as a non-concessional contribution in 2021/22. 111. IV. Outline the non-concessional contribution bring forward rules in your own words (3 marks) Determine whether Sonia can contribute a further $150,000 in 2021/22. Explain your answer, including any taxation consequences. (4 marks) Show your workings. Full marks will not be awarded if workings are not provided.
Expert Answer:
Answer rating: 100% (QA)
a i Salary sacrifice to superannuation works by allowing an employee to reduce their pretax salary a... View the full answer
Related Book For
Systems analysis and design
ISBN: 978-0136089162
8th Edition
Authors: kenneth e. kendall, julie e. kendall
Posted Date:
Students also viewed these finance questions
-
The following exercises will guide you into building a simplified model of the Cathode Ray Tube's behavior. Please answer each question in your lab notebook. 1) The accelerating voltage V, which you...
-
My doctor told me that I have antibody to the Epstein-Barr virus. Why do I have this antibody if I have Multiple Sclerosis?
-
It had been a very bad morning for John Ross, the general manager of MMC's Chinese joint venture. He had just gotten off the phone with his boss in St Louis, Phil Smith, who was demanding to know why...
-
Explain why placing soy sauce in airtight bottles was more successful for long-distance shipping than simply placing the sauce in barrels.
-
1. What should be John and Emily's first priority before investing or making any investment plans? 2. If John and Emily asked you to prioritize their goals, how would you rank their investment...
-
Tim Rowe owns a small trucking firm that specializes in local and metro-area delivery in large city in the United States. All employment activities are handled by Tim who has always hired employees...
-
Donna Adams started an interior design company called Interiors by Donna, Inc., on September 1, 2010. The following amounts summarize the financial position of her business on September 14, 2010,...
-
Coca-Cola markets PowerAde as a sports drink that competes with Gatorade. Competition for sports drinks is fierce where they are sold in the coolers of convenience stores. Coca-Cola is thinking about...
-
Question 2 [8] Suppose you take a short position in a three-month futures contract on 2 500 kilograms of Fine Wool at a futures price of 1 010 cents per kilogram. You are required to deposit R19 000...
-
Hemming Company reported the following current-year purchases and sales for its only product. Date Activities January 11 Beginning inventory. January 10 Sales March 14 March 151 July 30 October 5...
-
Solve the equation. Check your solution. 7. x + 12-7 10. 0.7+y=-1.34 6 21. +d Solve the equation. Check your solution. 18. 7x=35 =7.3 8. g-16-8. 11. x-8m # 24. -7.8x=-1.56 14. 19. 4--0.8m 22.-4.3g =...
-
Find the net force on a point charge q that is located a distance a/2 above a grounded, infinite conducting plane and a/2 below a square loop of side a carrying a uniform linear charge density X....
-
Calculate REPCO's predetermined total overhead rate. Calculate the amount of overapplied or underapplied overhead for the year. REPCO's policy is to write off the amount of overapplied or...
-
Does the following function have a memory problem? int * fun(int n) { int * tmp; tmp tmp = malloc(sizeof(int) * n); 7 ; . return tmp; }
-
Calculate the adjusted cost base of the shares: Option price: $15 per share FMV of the shares when the options were exercised: $17 per share Bargain element: $15 - $17 = -$2 per share Number of...
-
ing the Question 2 Solve the following problem with branch and bound algorithm: max z = 3x1 + x2 st: 2x1 - x2 6 x1 + x2 4 x1, x2 0, xinteger
-
1. What are some of the challenges the labor force creates for healthcare managers in the process of recruiting personnel? 2. How would you overcome those challenges, as a healthcare manager?
-
Using Apple, demonstrate how the differentiation strategy can be well implemented.
-
Ricardo has asked you to computerize the billing process for Citron so that customers can get their cars quickly and still be billed correctly. Draw a decision table that represents the conditions,...
-
List the three approaches to complex random sampling.
-
Make a list of other input displays that Maverick Transport should develop. Remember to include dispatcher screens as well as screens to be accessed by customers and drivers. Indicate which should be...
-
Refer to the data for Jen Weaver Insurance in Problem 4-34B. After journalizing and posting Weaver's adjusting and closing entries, prepare the company's income statement for the year ended April 30,...
-
The accountant of Lancer Copy Center encountered the following situations while adjusting and closing the books at February 28. Consider each situation independently. a. The accountant failed to make...
-
Selected accounts of Elevator Service Company, at December 31, 2008, follow. Requirements 1. Prepare the company's classified balance sheet in report form at December 31, 2008. Show totals for total...
Study smarter with the SolutionInn App