Reference no: EM133019517

Zimelda, aged 85, has $200,000 superannuation balance all of which is taxable. She also has a $800,000 life insurance policy incorporated within her superannuation policy. Zimelda does not have any surviving spouse and has only one son, Trombone, who is not a tax dependent family member. Zimelda has completed a binding death benefit nomination naming Trombone as her sole heir. Unfortunately, Zimelda is killed in a boating accident while returning from a riverboat cruise.

Extra information: Trombone's tax rate is 32 per cent and the full benefit is taxable.
Withholding tax rates:
Death benefit ETP paid to non-dependants - taxable component
All ages Up to the ETP cap amount 32% ETP cap
Amount above the ETP cap amount 47% ETP cap

-How much tax will be deducted by the trustees from Trombone's inheritance?
-What will be the total tax payable on the superannuation payout?
-If Trombone is not satisfied with the calculation and payout, is he able to approach an organisation to formally complain and seek an alternate remedy? explain why or why not.