Accounting Law Assignment Example | Topics and Well Written Essays - 2000 words

Accounting Law - Assignment ExampleThe Superannuation Industry (Supervision) Regulations 1994 Schedule 1 provides for the conditions of release of the superannuation lineages beneath Part I, sections 101 to 114 thereof, namely retirement death terminal medical condition permanent incapacity former temporary resident under current conditions payment to the Commissioner of Taxation under the Superannuation (Unclaimed Money and Lost Members) Act 1999 termination of employment on or afterwards July 1, 1997 where the members fund does not amount to more than $200 severe financial hardship attainment of age 65 compassionate grounds termination of employment with an employer who contributed to the monetary resource for the member temporary incapacity attainment of deliverance age a found lost member with fund balance amounting to less than $200 current conditions under the Income Tax Assessment Act 1997 under s 292-B of the Income Tax (Transitional Provisions) Act 1997, and so provi ded as release conditions under 62(1) (b) (v) of the 1994 Act. In the problem at hand, Jonathans primary condition for release of his superannuation fund balance is retirement, which is further defined as a state when the person under paying employment of another is set to terminate that employment and will never again seek employment either on a full or part time basis. 1 In addition, that employee contemplating retirement must have got reached the age of 60 or if below 60, must have reached his or her preservation age, according to s. 7 of the same Act. The problem does not state, however, if Jonathan has reached his preservation age, a condition assumed if a person is born under the following dates forward 1 July 1960 to 30 June 1961, if 55 years of age between 1 July 1960 to 30 June 1961, if 56 years of age between 1 July 1960 to 30 June 1962, if 57 years of age between 1 July 1962 to 30 June 1963, if 58 years of age between 1 July 1963 to 30 June 1964, if 59 years of age, or after 30 June 1964, if 60 years of age.2 Fig. 1 Superannuation Interest Tax3 Thus, for Jonathan to be able to able to price of admission his superannuation fund balance, he must have been born between 1 July 1960 to 30 June 1962, since he is now 57 years of age, otherwise he will not be able to access the same on the ground of retirement. Assuming he was born between that period, Jonathan can lawfully access his fund and the tax due on the well-being from the superannuation fund depends on the following factors age whether as lump sum or income stream, and the taxed or untaxed elements present in the fund.4 Figure 1 above illustrates how taxes of superannuation benefits are determined. A superannuation benefit, according to the diagram, may have components, which according to s. 307.120 of the Income Tax Assessment Act 1997 (ITAA 97 hereafter), may be a taxable or tax-free component. Superannuation income streams paid on or after 1 July 2007 have tax free components that are ord inarily the crystallised segment and the contributions sequence the taxable component is the amount of the income stream benefit minus its tax free component. A superannuation income stream as a regular series of payments made directly from accumulated superannuation contributions or purchased with a lump sum (Guide to Social Security Law 2011) while the ITAA Regulations define it as an annuity for the purposes of the SIS Act in conformation with the subregulation 1.05 (1) of the SIS Regulations or a pension for the purposes of the SIS Act in accordance with subregulation 1.06 (1) of the SIS Regulations or a pension for the purposes of the RSA Act in accordance with regulation 1.07 of the RSA Regulations. In addition, it is also an annuity or pension within the convey of the SIS Act and commenced after 1 September