Fred

Additional detail: His children are paying rent to the self-managed super fund (SMSF) because the farming property is held in the fund as an investment asset.

Starting super balance: $3.8 million (including his $3 million farm as well as shares and bank deposits).
Ending super balance: $4.1 million (the value of his farm has increased, he earns some interest and dividend payments, he receives rent on his land, and he withdraws $190,000).

Accounting for his withdrawal of $190,000 throughout the year, Fred's adjusted total super balance at the end of the year is $4.29 million.

That means his superannuation earnings for the year are $490,000.

But only about one quarter - or 30 per cent - of those earnings are taxed because only one quarter of his adjusted super balance is above the $3 million threshold.

That puts his taxable earnings at: $131,467.

Since 15 per cent of $131,467 is $19,720.05, that is the additional tax bill Fred will have to pay at the end of the year.