Mary has $500,000 invested in XYZ superannuation fund, which is in the transition to retirement income stream phase. Mary is an Australian resident. Which of the following statements is TRUE in relation to this scenario?

Select one:

a. Mary's super fund would incur 15% tax on any income on investment earnings from the XYZ super fund, and pay 10% on any capital gains generated if the holding period was less than 12 months

b. Mary's  super fund would incur 15% tax on any income on investment earnings from the XYZ super fund, and pay 10% on any capital gains generated if those assets were held for greater than 12 months.

c. Mary's  super fund would incur 0% tax on any income on investment earnings from the XYZ super fund, and pay 0% on any capital gains generated if those assets were held for greater than 12 months.

d. Mary's  super fund would incur tax at her marginal tax rates on any income on investment earnings from the XYZ super fund, and pay 10% on any capital gains generated if those assets were held for greater than 12 months.

 Dominic is age 69 and is retired. He has $480,000 in a retirement phase income stream account. His investments have produced income returns of $40,000 and capital returns of $30,000. The assets that produced the capital returns were owned by the fund for 6 months. Which statement is correct regarding these returns?

Select one:

a. The earnings will not be taxed.

b. The $40,000 will be taxed at 15%. The $30,000 will be taxed at 15%.

c. The $40,000 will be taxed at 15%. The $30,000 will be taxed at 10%.

d. The $30,000 will be taxed as it comes from a capital gain.

Answer rating: 100% (QA)

Marys Scenario Mary has 500000 invested in the XYZ superannuation fund which is in the transition to retirement income stream phase Mary is an Austral... View the full answer