EXAMINATION
Finish of Semester 2, 2022
TAXA3005 Superannuation and Retirement Planning
This paper is for Bentley Exterior and Bentley Inner college students
That is an OPEN BOOK examination
Examination paper IS NOT to be launched to pupil
Examination Period four hours
Studying Time 15 minutes
Whole Marks 40 Marks
Provided by the College
None
Provided by the Pupil
Supplies
Any written supplies allowed
Calculator
A monetary calculator is permitted on this examination
Directions to College students
All questions have to be answered in a separate doc (eg, MS Workplace) and submitted through Turnitin.
The Temporary:
Jack, who was born on three March 1957, has been an worker of a significant consultancy agency for ten years. The agency has skilled monetary difficulties because of the financial downturn in 2022 so Jack has determined to retire.
Jack is married, and Jill, who was born on 19 August 1961 is just not presently working.
A assessment of their monetary place reveals the next:
• Jack Superannuation (accumulation fund) $450,000
• Jill Superannuation (accumulation fund) $1,200,000
• Managed funds held outdoors superannuation (joint names) $120,000
the speed of return on this funding is presently three% pa = $three,600 pa
• Residence (owned as joint tenants for greater than 10 years) $900,000
• Mortgage ($150,000) $750,000
Jack employer has supplied a voluntary redundancy package deal to workers. An worker accepting the package deal can’t be reengaged for six months. The human sources supervisor has suggested that the next entitlements could be paid beneath the redundancy package deal:
• Lengthy Service Depart (pro-rata entitlement) $14,000
• Annual Depart (four weeks) $7,000
• Redundancy cost (10 months wage) $67,000
$88,000
Jack is presently on an annual wage of $84,000 pa. Primarily based on annual expenditure, Jack and Jill estimate that they want an revenue of $75,000 pa, not together with mortgage funds which might be presently $2,500 pm or $30,000 pa.
Jack has been engaged on a mission that has been deferred for 12 months because of the financial downturn, and the Challenge Lead has requested whether or not Jack could be accessible to do some contracting work if the mission recommences.
REQUIRED: Jack and Jill have requested in your recommendation in respect of the next points to Help them to resolve a retirement technique:
1. If Jack have been to take the redundancy package deal on the finish of December 2022, what would the taxation remedy be in respect of every element of the redundancy package deal?
10 marks
2. What necessities must be met for Jack and/or Jill to attract down on superannuation after Jack takes the redundancy package deal?
5 marks
three. Are Jack and/or Jill entitled to the Age Pension and in that case, how a lot would they be entitled to obtain? Assume the Authorities broadcasts that the Age Pension age is 65, efficient from 1 July 2022. Do, es this transformation your reply and in that case, how a lot would they then be entitled to obtain? 10 marks
[Hint. Assume that the redundancy net amount is $80,000.]
four. Primarily based in your findings in relation to the above points, will Jack and Jill have entry to adequate revenue to satisfy their ongoing bills within the brief to medium time period? How would you suggest that they restructure their property as Jack enters formal retirement?
10 marks
5. Jack and Jill are planning to spend a while travelling round Australia. They’ve seen a motor house that may price $250,000 and are looking for your recommendation on the way to fund this buy in the best way that can minimise the impact on their retirement revenue.
5 marks
ADDITIONAL INFORMATION
The place you want additional data you should determine the extra data required, the assumptions that you’ve made and how the recommendation would change in case your assumption is just not right.
You aren’t required to write down a proper letter of recommendation for this case examine. You need to present a ultimate checklist of your key suggestions
Your solutions have to be addressed for the 2022-2023 revenue 12 months, until in any other case specified.
It’s essential to cite related laws, rulings and instances in your response, each time vital.
END OF EXAMINATION

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