question 2

Henry is a designer who is 58 years old and past his preservation age. He seeks your advice concerning his current superannuation position. You ascertain he has $500,000 in total in his superannuation account, which includes a $400,000 taxable component. He rolls this over in order to obtain an account-based pension on 1 July 2020.

Required:

1. Calculate the minimum and maximum pension amount that must be paid in the financial year 2021. Show your calculations.

2. Calculate the minimum pension payment in the financial year 2021, if Henry commences his account-based pension on 1 February 2021. Show your calculations

3. Calculate his taxable and tax-free portions, if Henry elected to receive a pension of $20,000. Show your calculations.

4. Discuss the tax treatment of Henry's pension income at his current age, and when he turns 60 years of age. Provide and demonstrate the relevant calculations to support your answer.