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:

Internal Exchange

The process and activities involved in the trading of goods, services, or information within the confines of an organization, rather than with external parties.

Underrewarded

The perception or reality of receiving less compensation or recognition than what one's efforts or contributions to the organization warrant.

Restricting Output

intentionally limiting the amount of products or services produced, often to maintain high prices or ensure quality.

Ph.Ds

Terminal academic degrees awarded by universities or higher education institutions, signifying the highest level of expertise in a specific field of study.