Julie Phillips is the Little Pear Administration Pty Ltd Managing Director. She has been in the company
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Question:
Julie Phillips is the Little Pear Administration Pty Ltd Managing Director. She has been in the company for 8 years but her position is no longer needed due to a recent outsourcing strategy. She accepts the redundancy termination and is paid $200,000. The genuine redundancy part of her payment is $300 per week worked for the company. Her other taxable income in 2018-19 is $125,000. Julie has not reached preservation age.
- Work out Julie’s redundancy payment including the tax-free, taxable component and tax withheld. (Show your workings).
Non-genuine redundancy:
| WORKINGS | ANSWER |
Non-genuine redundancy | $200,000 - $124,800 | $75,200 |
Whole-of-income cap | 180,000 - $125,000 | $55,000 |
ETP cap | ? | ? |
Concessional tax | $55,000 x 32% | $17,600 |
Non-concessional tax | $75,200 - $55,000 = $20,200 x 47% | $9,494 |
calculate ETP CAP.
Related Book For
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ISBN: 9781292409863
13th Global Edition
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
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