William (59) and Emma (58) are considering retiring in the next few years. They have some questions for you since you are their adviser. William is employed as a surveyor and earns a salary of $110,000p.a. + 9.5% Superannuation guarantee charge. He has $800,000 in his superannuation account, with $300,000 in the Tax-Free component and $500,000 in the Taxable component. Emma is a self-employed freelance journalist and earns $47,000 p.a. She has not made any contributions to her superannuation account since starting her business 2 years ago. From her previous employment, she has a superannuation account which has $340,000 in it, made up of $275,000 Taxable and $65,000 Tax-Free components. Emma's superannuation account has a binding death nomination, split 80% to William, and 20% to Rick, who is their son and is aged 28. (8 marks) QUESTION 4 Assume William and Emma wish to retire. REQUIRED: (a) Calculate the maximum amount that Emma can withdraw from her superannuation account without paying any tax. Show your calculations. (b) Calculate the new tax-free component amount and percentage for Emma after adopting a re- contribution strategy. (c) What will be the tax saving percentage made by adopting the re-contribution strategy? Show your calculations. William (59) and Emma (58) are considering retiring in the next few years. They have some questions for you since you are their adviser. William is employed as a surveyor and earns a salary of $110,000p.a. + 9.5% Superannuation guarantee charge. He has $800,000 in his superannuation account, with $300,000 in the Tax-Free component and $500,000 in the Taxable component. Emma is a self-employed freelance journalist and earns $47,000 p.a. She has not made any contributions to her superannuation account since starting her business 2 years ago. From her previous employment, she has a superannuation account which has $340,000 in it, made up of $275,000 Taxable and $65,000 Tax-Free components. Emma's superannuation account has a binding death nomination, split 80% to William, and 20% to Rick, who is their son and is aged 28. (8 marks) QUESTION 4 Assume William and Emma wish to retire. REQUIRED: (a) Calculate the maximum amount that Emma can withdraw from her superannuation account without paying any tax. Show your calculations. (b) Calculate the new tax-free component amount and percentage for Emma after adopting a re- contribution strategy. (c) What will be the tax saving percentage made by adopting the re-contribution strategy? Show your calculations
