Susan, a friend of Karunesh and Asha has recommended that they set up a Self-Managed Superannuation Fund (SMSF), as it will provide them with better returns. Susan has suggested that the SMSF purchase a property and that Karunesh and Asha can live in that property and pay the rent directly to the SMSF by making tax-deductible salary sacrifice contributions.

7. Assume the property generates a rental income of $600 per week, after real estate and other associated fees have been deducted. Based on their personal incomes and other details provided in the fact find: i. Calculate the amount the clients would receive net of tax, if the property was acquired in their personal names (in joint ownership). (15 marks) ii. Now calculate the net after tax amount that would be received if the property were acquired via their SMSF. (15 marks) Clearly show all your workings and any assumptions. Assume this is for the period July 1 2019 to 30 June 2020 only