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Module 6 (Part A: Income (Payments on termination of employment…

- - - - 2% x ( taxable income - $180,000)
      - Tax-free threshold
        
        resident for only part of the year
        
        Example 6.1 - not use general tax rate but different way
  - - - less than 18 years of age on the last day of the tax year; and
        
        who is not an ‘excepted person’ in relation to the tax year
    - - was engaged in a ‘full-time occupation; or
        
        suffers from some incapacity or disability that prevents full-time employment
    - - 8 bullet points (p.436)
      - if the amount of excepted income is increased as not at arm’s length => outside the category of excepted income
      - unless the income is ‘excepted assessable income’. The remaining income is ‘eligible assessable income
    - - Less 3 kinds of deductions (p.437)
      - Taxable income rates for resident minors - Table 6.2
      - apportionable deduction (p.439 formula)
        
        deductions for excepted assessable income
        
        deductions for elegible taxable income
  - - - recovery of capital exclusion
    - - residents
      - non-residents
    - - Taxable component of a superannuation benefit
      - Tax-free component of a superannuation benefit
      - Components of a superannuation benefit
        
        the benefit payment is divided based on the proportions of the value of the member's supperannuation interest (example 6.9 p.453)
    - - Taxation of unused long service leave payments (p.449)
      - Taxation of unused annual leave payments (p.449)
    - - early retirement scheme payments (*)(p.448)
        
        excess tax free component is assessable as an ETP if satisfy 82-130 or taxed without any ETP concessions
        
        tax free component (formula in p.448)
      - Genuine redundancy payments (p.447)
      - Death benefit termination payments (p.446-447)
      - Life benefit termination payments
        
        Whole-of-income cap threshold of $180 000
        
        taxable component (p.444)
        
        tax free component
        
        invalidity segment (p.443)
        
        pre-July 1983 segment
      - be received no later than 12 months after the termination
- - - - not the same as taxable income
      - sum of certain amounts (p.463)
      - deduct the annual amount of any child support/child maintenance
    - - Dependent invalid
      - Dependent carer
      - may be entitled to more than 1 DICTO
      - DICTO's formula
      - cannot claim DICTO in certain circumstances (p.464)
      - Partial DICTOR
    - - depends on:
        
        taxpayer status (single / married); and
        
        adjusted taxable income for rebates (ATIR = AITO)
      - Table 6.10
      - definition of dependants (p.466)
    - - Relevant amount include in (p.486)
      - Table 6.11
  - - - offset for contributions made to a complying superannuation fund or RSA for the taxpayer’s resident non working or low-income earning spouse aged 65 or less (or under age 70 if the spouse satisfies a work test)
      - Calculation for offset (p.470)
    - - 2015/16 is 30%.
  - - - income >= $37,000 - $445 tax rebate
      - $66,667 > income > $37,000 - Formula (p.471)
      - no tax rebate when income >= $66,667
    - - Conditions to be qualified for SAPTO (p.472)
      - Calculation - Table 6.12 (p.472)
      - Definition of rebate income (p.472)
    - - rebatable benefit = recipient of certain Commonwealth Government payments,
      - Rebatable benefits include Newstart allowance, youth allowance and specified Commonwealth education and training payments.
      - Calculation formula (p.474)
  - - - if $1000 or less, can claim amount of the tax paid as a tax offset
      - non-refundable, cannot be carried forward to subsequent
        years and cannot be transferred
      - lesser of foreign tax paid orAustralian tax payable in respect of the foreign income
      - remaining can be applied first against the Medicare levy, then against any Medicare levy surcharge liability and finally against any Temporary Budget Repair Levy
  - - - Order of tax offsets to apply
- - - - Table 6.16
- - - - individual’s activities are restricted to providing service to one principal or if the benefits arising from the work flow to the principal.
- - - - Step 1: Determine if income is personal service income
        
        Figure 6.3 - p.486
        
        Income is not PSI if it is mainly:
        • for the supply or sale of goods;
        • for granting a right to use property; or
        • generated by an income-producing asset.
      - Step 2: Determine whether the individual or entity is conducting a personal services business
        
        Attached file
    - - if an individual or PSE not conducting a PSB for that year:
        • if an individual,deductions against PSI are limited; or
        • if a PSE, any PSI will be attributed to and included in the assessable income of the individual who provided the service,
        Unless within 14 days after the end of the PAYG payment
        period, the PSI is paid to that individual as a salary or wage
      - Allowable deduction
        
        personal service income deductions
        
        entity maintenance deductions
    - - Deduction which can be claimed even when not conducting PSB (8 bullet points) (p.494)
      - Deduction which cannot be claimed even when not conducting PSB (3 bullet points) (p.494)
  - - - Deduction by employers
      - Up-front taxation
      - Refund of tax for forfeited shares
      - Start-up companies and ESS
      - Deferred taxation