Leanne has accepted an early retirement package in March after 23 years and eleven months of service.
Question:
Leanne has accepted an early retirement package in March after 23 years and eleven months of service. The following payments were received during the current income year. The employer also contributed $4,500 to superannuation during the year:
$ $
Salary 56,000
Dividend - franked to 100% 14,000
Long service leave (lump sum) pre-17/8/93 8,000
Long service leave (lump sum) post 17/8/93 25,000 31,000
Annual leave (lump sum) all post 17/8/93 10,000
Employer termination payment
Bona fide redundancy 150,000
Taxable component from superannuation fund 45,000
Golden handshake - all post 30/6/83 46,000 241,000
Required
Calculate the net tax payable (include Medicare levy), given that Leanne is:
- 50 years of age at the date of retirement.
- 60 years of age at the date of retirement.
Assume a preservation age of 58.
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett