Morten is now looking at withdrawing his superannuation funds to buy an income stream in his name. Details of his superannuation funds are as follows: Superannuation fund balance $450,000 Tax-free component 25% Taxable component 75%

Q. (a) If Morten withdrew the total superannuation balance as a lump sum, calculate the tax payable on the lump sum, including the Medicare Levy, using the 2020/2021 rates.

Current valuation $650,000 $950,000 Assets (Ownership) House (Jennifer) House (Morten) House Contents (Joint) Car (Morten) Car (Jennifer) Savings Accounts (Joint) Shares (Morten) Superannuation - Morten $125,000 $21,000 $25,000 $25,000 $100,000 - Jennifer $450,000 $250,000 Current valuation $110,000 Liability (Ownership) Mortgage (Jennifer) Mortgage (Morten) Car loan- (Morten) $35,000 $5,000 Income $23,500 House Rent (Morten) Interest-Savings Account (Joint) Shares Dividends - (Morten) $600 $4,900 ($2,100 Credit Imputation) 2500 $18,000 1700 Expenses Insurance, Insurance Mortgage, Maintenance (Morten's owned house) Mortgage - interest and principal (Jennifer's owned house) Maintenance, Insurance Mortgage (Jennifer's owned house) Car loan (Morten) 8% interest Donations to Charity (Jennifer) Travel between work and home (Morten) Travel between work and home (Jennifer) $2,600 320 700 1,500