Sylvia is age 42 and her superannuation balance is in the accumulation phase. Her investments have produced income returns of $2600 and capital returns of $9000. The assets that produced the capital returns were owned by the fund for a period greater than 12 months. Which statement is correct regarding these returns?

Select one:

a. The $2600 will be taxed at 15% and the $9000 will be taxed at 15%.

b. Earnings tax does not apply in the accumulation phase.

c. The $2600 will be taxed at 15% and the $9000 will be taxed at 10%.

d. The $2600 will be taxed at 10% and the $9000 will be taxed at 15%

David is age 64 and is retired. He has $766000 in a retirement phase income stream account. His investments have produced income returns of $32000 and capital returns of $18000. The assets that produced the capital returns were owned by the fund for a period greater than 12 months. Which statement is correct regarding these returns?

Select one:

a. The $32000 will be taxed at 15%.

b. The $32000 will be taxed at 15% and the $18000 will be taxed at 10%.

c. Earnings tax does not apply in this scenario.

d. The $18000 will be taxed at 10%.

Tim is age 64 and is still working. He has $486000 in a transition to retirement income stream account. His investments have produced income returns of $9000 and capital returns of $6000. The assets that produced the capital returns were owned by the fund for a period greater than 12 months. Which statement is INCORRECT regarding these returns?

Select one:

a. The $9000 will be taxed at 15% and the $6000 will be taxed at 10%.

b. The $6000 will be taxed at 10%

c. Tim has reached age 64, so earnings tax no longer applies.

d. The $9000 will be taxed at 15%.