Question

Stan Eckhardt, aged 57, received a superannuation lump sum of $310,000 from his superannuation fund upon retirement on 15 April 2018. PAYG tax of $28,170 was withheld from the lump sum. The lump sum comprised entirely of an element taxed in the fund.

Stan also received gross wages of $85,000 up to the date of his retirement.  PAYG tax of $22,110 was withheld from Stan’s wages. Stan has adequate private health insurance.

Required:

1. Calculate Stan’s taxable income for the 2017/18 tax year.

This is the answer for part (a) which I have it right answered Below:

Computation of taxable income for 2017-2018 :

Receipt from Super Annuation fund = $310,000

Receipt from annual wages  = $85,000

Total income for the year 2017-2018= $395,000

Total taxable income for 2017-2018- $ 395,000

Note: In the United States of America Super annuation fund is not tax deductible and hence any receipt from super annuation fund is taxable in the year of receipt.

I only need help with part b

b ) Calculate Stan’s net tax payable or refundable for the 2017/18 tax year.

Answer 1

PART ( b) : CALCULATION OF NET TAX PAYABLE OR REFUNDABLE OF STAIN FOR 2017/18

   Tax is worked out under the information given that his taxable income is $ 3,95,000 .

    Tax bracket on             Rate of tax                     Tax due

   upto $ 9325    10 %    932.50

on balance $ 28625 15 %        4293.75                          

   on balance $ 53950    25 % 13487.50

on balance $ 99750 28 % 27930.00

on balance $ 2,03,350 33 % 67,105.50

--------------------------------                             

                                             Total Tax Due                                  $    1,13,749.25

        Less : PAYG TAX WITH HELD

                1. On Super Annuation              $ 28,170

                2. On Wages                              $ 22,110                           50,280.00       

                   Balance Tax Payable                                                 $ 63,469.25

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