Reference no: EM132760001

Problem 1: For the 2020-21 financial year, which of the following describes the tax treatment of a lump sum withdrawal from a super fund, for a member aged 59 who has retired?

Select one:

a. The first $215,000 of the total benefit is not taxed; the balance is taxed at 15% + 2% Medicare Levy.
b. The tax-free component is not taxed; the taxable component (taxed element) is not taxed on the first $215,000, and taxed at 15% on amounts above $215,000.
c. The first $215,000 of the total benefit is not taxed; the balance is taxed at 15%.
d. The tax-free component is not taxed; the taxable component (taxed element) is not taxed on the first $215,000, and taxed at 15% + 2% Medicare Levy on amounts above $215,000.