Sophie's friend Bethany is 59 years old and continues to work. Bethany's superannuation balance is $400,000 is in a transition to retirement pension account and comprises $100,000 tax free component and $300,000 taxable component (from a taxed source).

1.Provided a clear explanation to Bethany for each of the following:

Assuming that Bethany's fund produces an investment, income return of 6% for the current financial year, explain the tax treatment of the return