For many Aussies, superannuation is quietly working away in the background and doesn't take up too much thought. But there are ways to take more control of your retirement preparation by contributing or withdrawing from your fund at different times. 

Before you make contributions or withdrawals, it's important to understand how superannuation is taxed. 

Super may be taxed at three points in its life. When you make:

• Contributions
• Investment earnings in the fund
• Withdrawals

However, the tax you pay on your super contributions and withdrawals depends on factors like how much you have in your super and your age. 

How are contributions taxed?

The money an employer pays directly into your super account is taxed at 15%. This is also the case for salary-sacrificed contributions (also known as concessional contributions). 

According to ASIC's MoneySmart website, there are some exceptions to this rule:

• If you earn $37,000 or less, the tax is paid back into your super account through the low-income super tax offset (LISTO) .
• Or, if your income and super contributions combined are more than $250,000, you pay an extra 15%.

If you make contributions from your after-tax income (non-concessional contributions), you don't pay any contributions tax.

According to research, many Australians are unaware you can save on tax by adding money to superannuation.

How are super investment earnings taxed?

Earnings on investments within your super fund are taxed at 15%. This includes interest and dividends, less any tax deductions or credits.

How are withdrawals taxed?

Withdrawals can be made as a lump sum or as a super income stream. 

Super income stream — This is when you withdraw your money as small regular payments over a long period of time.

If you're aged 60 or over, this income is usually tax-free. However, if you're under 60, you may pay tax on your super income stream.

More information on retirement income tax can be found here.

Lump sum withdrawal — This is an amount of money paid all at once, as opposed to being paid in regular installments. 

According to MoneySmart, If you're aged 60 or over and withdraw a lump sum:

• You don't pay any tax when you withdraw from a taxed super fund.
• You may pay tax if you withdraw from an untaxed super fund, such as a public sector fund.

If you're under age 60 and withdraw a lump sum:

• You don't pay tax if you withdraw up to the 'low rate cap', currently $235,000.
• If you withdraw an amount above the low rate cap, you pay 17% tax (including the Medicare levy) or your marginal tax rate, whichever is lower.

If you have not yet reached your preservation age:

• You pay 22% (including the Medicare levy) or your marginal tax rate, whichever is lower.

But, for more specific information, visit the Australian Taxation Office (ATO) website or speak to a financial adviser. 

Because everyone's situation is different, it can be helpful to get advice about tax matters.