Question 2.1 Lisa is 59 years old and has permanently retired from the workforce. She has come to your office to seek advice in regards to her superannuation. Lisa has $350,000 in her superannuation...

Question 2.1

Lisa is 59 years old and has permanently retired from the workforce. She has come to your office to seek advice in regards to her superannuation. Lisa has $350,000 in her superannuation accumulation fund which comprises $70,000 as a tax free component and $280,000 as a taxable component (from a taxed source). Lisa is planning to go on an extended overseas holiday with her daughter and would like to spend a year in Paris. She has a few questions she wants you to clarify.

Provide a clear explanation to Lisa for each of the following.

a. Can Lisa access her tax free component first as she wishes to use the $70,000 towards her trip and would rather keep the remaining $280,000 invested?

b. How much of the total $350,000 can Lisa access as a lump sum withdrawal from her superannuation accumulation fund, without having to pay any tax at all on that withdrawal?

c. At what age can Lisa access all her funds tax free?