Glynn Nicholas aged 68 is made redundant after 26 years at Ford Australia Ltd. He was...

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Glynn Nicholas aged 68 is made redundant after 26 years at Ford Australia Ltd. He was paid out the following amounts (remember he started there in 1990): RECEIPTS LSL-Aug '78 to Aug'93 LSL -Post '93 Redundancy payout (note 1) A.Leave-Post '93 G Wages (PAYG tax $20,000) Interest PAYMENTS: Deductions He has adequate private health insurance. Note 1: show workings of tax-free & taxable components of redundancy payment below including any allowable deductions. ITEM Name (Calculations) LSL 1978 to 1993 LSL Post 1993 10 399 +(26 x 5 200) = 145 599 tax free, so all of 130,000 is tax free. You are required to calculate the below in line with legislative and organisational requirements relating to redundancy: a. Taxable income b. Lump-sum offset (rebate) c. Tax payable after offsets A/leave Post 1993 G Wages I+L 600 20 930 7 000 65 000 65 000 600 20,930 130,000 600 20 930 7 000 7,000 65,000 500 600 30% 30% 30% Max. Tax rate Tax (on L) @ Max.rate 180 6279 2 100 Glynn Nicholas aged 68 is made redundant after 26 years at Ford Australia Ltd. He was paid out the following amounts (remember he started there in 1990): RECEIPTS LSL-Aug '78 to Aug'93 LSL -Post '93 Redundancy payout (note 1) A.Leave-Post '93 G Wages (PAYG tax $20,000) Interest PAYMENTS: Deductions He has adequate private health insurance. Note 1: show workings of tax-free & taxable components of redundancy payment below including any allowable deductions. ITEM Name (Calculations) LSL 1978 to 1993 LSL Post 1993 10 399 +(26 x 5 200) = 145 599 tax free, so all of 130,000 is tax free. You are required to calculate the below in line with legislative and organisational requirements relating to redundancy: a. Taxable income b. Lump-sum offset (rebate) c. Tax payable after offsets A/leave Post 1993 G Wages I+L 600 20 930 7 000 65 000 65 000 600 20,930 130,000 600 20 930 7 000 7,000 65,000 500 600 30% 30% 30% Max. Tax rate Tax (on L) @ Max.rate 180 6279 2 100

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