Hi all,
I want to better understand backpay/lump sum E calculations. The lump sum E threshold is met and is roughly 30% of the income in that year.
I want to understand how I can manually calculate what the Lump sum income arrears offset should be so that I can check it on my tax return.
Thanks,
Connor
Good luck with that one.
From ATO
"The calculations are complex and relate to each individuals' personal circumstances, there currently is no online calculator or detail we provide to explain the outcome."
Lump sum payment in arrears | Australian Taxation Office
Read through the link. If you understand the section LSPIA tax offset then your'e halfway there.
Thanks so much for the reply. Is there really no public information on how the calculation is done?
The completed tax return has roughly 40K income, 15k of which is back pay, which more than meets the 10% threshold. The backpay was also mostly for years where the tax free threshold applied. I don't understand how the return does not have an offset applied and wanted to understand that calculation.
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