William is 53 years old and so has not as yet met his preservation age and he decides to receive an income stream from his superannuation fund of $30,000 (assume a marginal tax rate of 32.5% and a Medicare levy rate of 2%). What rate of tax (plus Medicare levy) would William pay on this income stream for the year ended 30 June 2020?

Question

Quizplus · Accepted Answer

Since William is under his preservation age and decides to receive an income stream from his superannuation fund, the income stream will be taxed at his marginal tax rate plus the Medicare levy. Given his marginal tax rate is 32.5% and the Medicare levy is 2%, the total tax rate on this income stream would be 34.5%.

William Is 53 Years Old and So Has Not as Yet