How much earnings tax would apply to the total returns

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Nicholas is age 69 and is retired. He has $298000 in a retirement phase income stream account. For the current financial year his investments have produced income returns of $17000 and realised capital gains of $12000. The assets that produced the capital gains had been owned by the fund for 6 months.

How much earnings tax would apply to the total returns?

Select one:

a. $3750.00

b. $4350.00

c. $3500.00

d. $0.00

Nigel is age 59 and has retired early. He has $440000 in a retirement phase income stream account. For the current financial year his investments have produced income returns of $40000 and realised capital gains of $5000. The assets that produced the capital gains had been owned by the fund for a period greater than 12 months.

How much earnings tax would apply to the total returns?

Select one:

a. $6500.00

b. $6750.00

c. $4750.00

d. The earnings will not be taxed as Nigel has moved to the retirement income stream phase.

Reference no: EM132481434

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