Proportioning rule

From July 1, 2007, super lump-sum and pension payouts are made up of two components: a tax-free component and a taxable component in accordance with the proportioning rule. This rule ensures that any super lump-sum and pension payouts from that date are split to reflect the tax-free component and taxable component as a proportion of the member’s account balance .

The rule stops a member choosing which components to cash or include in a lump-sum and pension payout. (See Tax-free component) and Taxable component)
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