Dave Banks, a resident taxpayer aged 58, was employed by Cool Brick Ice Creamery until 17 June 2020 when his position became redundant

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Dave Banks, a resident taxpayer aged 58, was employed by Cool Brick Ice Creamery until 17 June 2020 when his position became redundant. Dave had total employment with the company of 20 years and 11 months.

Upon receiving the redundancy, Dave notified his superannuation fund that he intended to retire and drew his entire superannuation entitlement as a lump sum.

Amounts received by Dave from Cool Brick Ice Creamery for the year included:

Gross wages 1/7/2019 to 17/6/2020 (Including PAYG tax withheld $27,000) $ 76,000

Redundancy payment $ 117,840

Unused annual leave (all post 18/8/1993) $ 3,500

Unused long service leave

- Service post 18/8/1993 $ 16,400

Amounts received from his superannuation fund included:

Superannuation Lump Sum

Tax free component (Dave's own contributions) $ 95,000

Taxable component (element taxed in the fund, PAYG tax withheld $ 17,325) $ 260,000

REQUIRED:

a) Using the Excel template provided, calculate Dave's taxable income for the 2019/20 tax year.

b) What website did you refer to, in order to gain guidance the taxation of redundancy payments? Include link to the website.

c) What information is missing for you to be able to calculate Dave's net tax payable or refundable for the 2019/20 tax year?