Question 2

Apply your knowledge 4: Lump sum benefits 1. In 2023/24, Trish, aged 59, at preservation age receives a lump sum from a personal superannuation fund of $500,000 of which 5100,000 is the tax-free component and the remainder the taxable component, taxed element. What tax is payable on the lump sum? 2. How much tax would be payable if the funds were being paid from an untaxed government superannuation fund? 3. In both cases, if Trish had waited until she reached age 60 to make the withdrawal, what tax would she have paid? Apply your knowledge 4: Lump sum benefits 1. From the personal superannuation fund: Trish pays no tax on the 5100,000 tax-free component and 528,050 on the taxable component ($400,000 taxed element 5235,000 low rate cap amount x 17%). . From an untaxed government superannuation fund: Trish pays no tax on the $100,000 tax-free component and 592,750 on the taxable component ($235,000 x 17% + $400,000 - $235,000 low rate cap amount x 32%). If the taxable component (taxed element) was taxable component (untaxed element) in the government superannuation fund, she would pay 539,100 in tax (5230,000 = 17% including Medicare le . If she had waited until she was 60, Trish would not have paid any tax from her personal superannuation fund. The taxable component that comprises a taxed element is tax-free at age 60. However, in the case that it comes from an untaxed plan, then the untaxed element of 5400,000 is taxed at 17%. Trish would pay 568,000 in this case