In this guide
When it comes to your super, tax is always an important consideration – both when you make a contribution and when you finally get to take your money out of super on retirement.
As the super system offers special tax benefits designed to help you save for your retirement, there are strict rules in place covering when you qualify to withdraw your super savings and how much tax you need to pay on them.
The proportioning rule is one of these tax rules. It governs how the tax components of your superannuation withdrawals are calculated.
What tax do I pay on my super savings?
Before diving into the complexities of the proportioning rule, it’s worth briefly covering the basics about withdrawing your super and how much tax you pay at different ages.
In most cases, to withdraw from your super you need to have reached your preservation age (currently 60) and met a condition of release. Your super can only be accessed early in specific circumstances, such as becoming permanently disabled, being diagnosed with a terminal illness or if you face severe financial hardship.
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