Question
Stuart is 59 years old and has $750,000 in Superannuation which includes a tax-free component of $240,000 and a taxed superannuation component of $510,000. Stuart
Stuart is 59 years old and has $750,000 in Superannuation which includes a tax-free component of $240,000 and a taxed superannuation component of $510,000. Stuart has satisfied a condition of release from Superannuation and decides to withdraw $400,000 as a lump sum and immediately recontribute this $400,000 as a non-concessional contribution. a) Will Stuart be subject to any lump-sum withdrawal tax? (4 marks) b) What will Stuarts tax free component be after the recontribution takes place? (2 marks) c) Why might Stuart be seeking to increase his tax-free component? (4 marks)
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