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CASE 3 (1) Employment termination payment Barbra Purcell began her employment with the Republic Bank of Australia (RBA) in January 2005 and was made redundant on 1 April 2020, at the age of 58 years. Barbra received the following payments.

CASE 3 (1) Employment termination payment Barbra Purcell began her employment with the Republic Bank of Australia (RBA) in January 2005 and was made redundant on 1 April 2020, at the age of 58 years. Barbra received the following payments.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CASE 3 (1) Employment termination payment Barbra Purcell began her employment with the Republic Bank of Australia (RBA) in January 2005 and was made redundant on 1 April 2020, at the age of 58 years. Barbra received the following payments. • Gross salary from employer • Genuine redundancy payment • Unused annual leave $90,000 $70,000 $5,000 Unused long service leave $9,400 Required Advise Barbra on the taxation implications of her redundancy. Assume no deductions to claim. You must clearly identify any ETP tax offset. You must provide relevant cases and/or legislation. (2) Superannuation Barbra (58 years old) also currently has superannuation valued at $662,000 with the Suncorp (complying Super fund). The total amount includes the following elements; Tax free component $105,000 Element untaxed in the fund $10,000 Element taxed in the fund $550,000 Required Advise Barbra what would be the tax consequences of withdrawing her super during 2019/20, including all options available to her. You must provide relevant cases and legislation.
Transcribed Image Text:CASE 3 (1) Employment termination payment Barbra Purcell began her employment with the Republic Bank of Australia (RBA) in January 2005 and was made redundant on 1 April 2020, at the age of 58 years. Barbra received the following payments. • Gross salary from employer • Genuine redundancy payment • Unused annual leave $90,000 $70,000 $5,000 Unused long service leave $9,400 Required Advise Barbra on the taxation implications of her redundancy. Assume no deductions to claim. You must clearly identify any ETP tax offset. You must provide relevant cases and/or legislation. (2) Superannuation Barbra (58 years old) also currently has superannuation valued at $662,000 with the Suncorp (complying Super fund). The total amount includes the following elements; Tax free component $105,000 Element untaxed in the fund $10,000 Element taxed in the fund $550,000 Required Advise Barbra what would be the tax consequences of withdrawing her super during 2019/20, including all options available to her. You must provide relevant cases and legislation.
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