Australia

Diploma Financial Planning

Case Study: Superannuation

Mikaela is 59 years old and has permanently retired from the workforce. She has come to your office to seek advice in regards to her superannuation.Mikaela has $350,000 in her superannuation accumulation fund which comprises $70,000 as a tax free component and $280,000 as a taxable component (from a taxed source).Mikaela is planning to go on an extended overseas holiday with her daughter and would like to spend a year in Paris.She has a few questions she wants you to clarify.

Provide a clear explanation to Mikaela for each of the following.

1. How much of the total $350,000 can Mikaela access as a lump sum withdrawal from her superannuation accumulation fund, without having to pay any tax at all on that withdrawal?Show your calculations.