TAXATION OF SUPERANUATION
Sub part (b):
Lisa commences her pension fund on 1 July 2018 taking 60% of her superannuation
fund. The fund on that date her previous balance of $700,000 plus the contribution of
$500,000 and $20,000. As per the division 295 of ITAA 1997 in respect of superannuation,
the income from assets supporting the transition to the retirement pension is taxable, and the
basis for computation of the tax on such income must be assessed carefully in accordance
with the respective legislation of the ITAA1997. The balance of her total taxable and
exempted superannuation fund on the date of commencement of pension account can be
computed as below.
Computation of Balance Taxable and Tax free fund as on 1 July 2018
Particulars Tax Free Taxable
Component Total
Balance as on 30 June 2017 $ 2,00,000 $ 5,00,000 $ 7,00,000
Add: Contribution
December 2017 $ 5,00,000 $ 5,00,000
March 2018 $ 20,000 $ 20,000
Interest Credited During the year $ 20,733 $ 23,267 $ 44,000
Total balance as on June 30 2018 $ 7,20,733 $ 5,43,267 $ 12,64,000
Computation of Taxable and tax free interest
Tax Free
Fund Months
(Fund
multiplied
by months)
Taxable
Fund Months
(Fund
multiplied
by months)
Total
200000 12 2400000 500000 12 6000000 8400000
500000 6 3000000 20000 3 60000 3060000
5400000 6060000 11460000
Total Interest $ 44,000
Tax Free $ 20,733
Taxable $ 23,267

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Taxation of Superannuation

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