Tracey is age 59 and has reduced her work week to 3 days per week. She has $200000 in a transition to retirement phase income stream account. For the current financial year her investments have produced income returns of $5000 and realised capital gains of $11000. The assets which produced the capital gains had been owned by the fund for over 12 months.

How much earnings tax would apply to the total returns?

Select one:

a. $1850.00

b. $2400.00

c. $1600.00

d. No earnings tax applies because Tracey is in the income stream phase.

Maxine is age 62 and continues to work full-time. She has $490000 in a transition to retirement phase income stream account. For the current financial year her investments have produced income returns of $45000 and realised capital gains of $22000. The assets that produced the capital gains had been owned by the fund for only 6 months.

How much earnings tax would apply to the total returns?

Select one:

a. $8950.00

b. $10050.00

c. $6700.00

d. Maxine is over the age of 60 so earnings tax is switched off.