LAWS7012 | Business Taxation
Assignment – Semester 1 | 2014
Question 1 | 20 Marks Your client was born in Sydney on 23 June 1949 but completed all his schooling and university studies in Brisbane. Your client graduated from the University of Queensland with a Bachelor of Commerce in 1970 and then worked as an accountant for several major accounting firms, until he commenced employment as a lecturer in accounting on 1 January 1992 with the Queensland Institute of Technology, now the Queensland University of Technology (QUT). After nearly 22 years employment with the university your client is considering a change of career as QUT is currently offering a generous early retirement package to academic staff at the university. Your client would be eligible for a maximum 40 weeks’ pay under QUT’s early retirement scheme and based on your client’s current salary, their gross payment under this scheme is approximately $140,000.
QUT’s Human Resources area has advised your client of the following information: 1. Year to date gross salary paid as at 1 April 2014 = $140,000 2. Projected full year gross salary as at 30 June 2014 = $160,000 3. Unused Annual Leave = $5,000 4. Unused Long Service Leave = $8,000 5. If your client was to resign rather than accept early retirement, they will only be entitled to payments relating to any unused annual leave and long service leave. 6. To be eligible to participate in the early retirement scheme all relevant staff must terminate their employment with the university on or before 4 July 2014. In addition to the above information you have ascertained your client has been on university approved study leave and long service leave since early 2013, travelling around Europe and the Americas on a working holiday researching material for a new Accounting and Finance textbook he is writing. He is currently in Seville, Spain but will return to Brisbane if he decides to accept the early retirement offer from the university. As...