e. Assume that in 2022, Sam does not earn any income other than his $98,000 income, and has no deductions. How much income tax can he save this year by making the maximum concessional contribution into his super fund, in comparison to not salary sacrificing at all? Show both tax calculations side by side, as well as net income after tax. Note that Superannuation Guarantee Scheme employer contributions are in addition to his $98,000 income. Include the medicare levy and medicare levy surcharge if applicable, and compare Sam's net income after tax achieved across both strategies.
e. Assume that in 2022, Sam does not earn any income other than his $98,000 income, and has no deductions. How much income tax can he save this year by making the maximum concessional contribution into his super fund, in comparison to not salary sacrificing at all? Show both tax calculations side by side, as well as net income after tax. Note that Superannuation Guarantee Scheme employer contributions are in addition to his $98,000 income. Include the medicare levy and medicare levy surcharge if applicable, and compare Sam's net income after tax achieved across both strategies.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:e. Assume that in 2022, Sam does not earn any income other than his $98,000 income, and has no
deductions. How much income tax can he save this year by making the maximum concessional
contribution into his super fund, in comparison to not salary sacrificing at all? Show both tax
calculations side by side, as well as net income after tax. Note that Superannuation Guarantee
Scheme employer contributions are in addition to his $98,000 income. Include the medicare levy
and medicare levy surcharge if applicable, and compare Sam's net income after tax achieved across
both strategies.
Transcribed Image Text:Sam is single, has just turned 30 years of age, and would like to retire comfortably on his 80th birthday. He is
working as an Administrative assistant and has no super or Private Health Insurance to this stage. His
ordinary times earnings are $94,000 and he also receives an irregular $4,000 commission per year, and this is
expected to remain the same indefinitely. Sam has analysed the available superannuation funds, which have a
long term return of 6% after inflation.
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