Melanie is 58 and has a superannuation balance of $400,000:

                                                                                       $                                %

Tax-free component                                                80,000                         20

Taxable component (taxed element)                     320,000                       80

 
c) part 1) If Melanie dies and her superannuation is paid to her adult (non-dependant) daughter, how much tax will apply?

 
c) part 2) If Melanie had implemented a re-contribution strategy by cashing and re-contributing $150,000 from/to her superannuation, how would this have changed the tax due for her daughter?

Question 3

a) Discuss the financial implications of redundancy.


b) Explain how you might guide a client to ensure they are financially prepared.

 
Question 4

Fred and Wilma are a married couple, both aged 58. Fred is to receive $130,000 in tax free redundancy and leave payments and a LBTP of $50,000, gross, that meets the transitional rules for roll over to super.  They owe $100,000 on their home loan, monthly payments of $1,400 based on 4%pa.  Fred hopes to return to work as they need his wages to help with living costs.

a) Should Fred use the $130,000 to repay their home loan? Explain why/why not.

b) Should Fred roll or cash his LBTP? Explain why/why not.

 
Question 5

Bruce, 52, and Robin, 55, are married and run a partnership together.  They have agreed to sell their business for $4 million, (purchased in 2007 for $1 million) and will retire.   Their business is an 'active asset'. Apart from their family home and cars, they have no other assets.

a) Explain the CGT concessions that may be available to them as small business owners.

b) Calculate how much tax they will pay on the $3,000,000 gain made on sale.

c) Discuss the implications of the financial planning advice that you will provide.

Question 6

Australian Retirement Income Policy continues to evolve, relative to baby boomer reaching retirement age.

a) Provide a summary of major Australian superannuation retirement income legislative changes since 1992 - link to associated political party in government at time of introduction.

b) Explain how Australian baby boomers moving to retirement can be impacted by policy.

c) Identify and explain theories associated with Australian retirement income policy.

Answer rating: 100% (QA)

Here are the answers to the questions 1 If Melanie dies and her superannuation is paid to her adult nondependant daughter The taxfree component of 800... View the full answer