Joshua has just retired at 56 and has a balance in his superannuation fund of $800,000 which consists of a taxable component of $600,000 and a tax-free component of $200,000. He has a partner Lisa who is 54 years old and will retire when she turns 56. She has $200,000 in superannuation which is made up wholly of a taxable component.

Joshua has come to you for advice on the most tax-effective way of structuring his superannuation. He and Lisa require about $60,000 after tax to live their modest lifestyle. Currently, Lisa earns $30,000 as a part-time teacher. The assets they have consist of a house that is not mortgaged, their superannuation, and savings of about $20,000.

Provide your advice on how Joshua’s superannuation can supplement their income and provide a strategy that will provide the most tax-effective income for them both.

Answer rating: 100% (QA)

ANS WER Joshua and Lisa s super ann uation strategy should aim to minim ise their tax liability and ... View the full answer