Using the Individual Tax Rate Table in Chapter 3 of the Text

question 16

Essay

Using the individual tax rate table in chapter 3 of the text, calculate the amount of tax that Mr. Robbie Anders (56 years of age) would save by contributing $35,000 as a salary sacrifice superannuation contribution in the 2015 financial year instead of receiving the same amount ($35,000) as part of his annual salary of $105,000. For the purposes of this question ignore the Medicare levy and any superannuation guarantee payments for this year.

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Definitions:

Situation

A set of circumstances or the state of affairs at a particular time and place.

Perceived

Regarded or understood in a certain way by individuals, based on their own observations or interpretations.

Fundamental Attribution Error

The bias of attributing others' actions to their character rather than to situational factors.

Observers

Individuals who watch or notice something or someone, commonly used in the context of scientific research or social studies.