Paying tax when withdrawing super
The amount of tax you pay when you access your super depends on if you withdraw your super from:
West State Super and Gold State Super
West State Super and Gold State Super are untaxed funds, which means you'll only be taxed when money is taken out of your account. Untaxed does not mean 'no tax', so it can be helpful to think of it as deferred tax.
GESB Super
GESB Super is a taxed fund, which means tax is deducted upfront, when certain types of contributions are made into the account and from any investment earnings.
Other factors that impact the tax you pay
In addition to the type of account you're in (either West State Super, Gold State Super or GESB Super), the amount of tax you pay also depends on your age, the components of your benefit and if you withdraw your super:
As a lump sum
Withdrawing a larger amount as a one-off
As a retirement income stream
Withdrawing small regular payments over a long period of timeBy rolling over to another fund
Withdrawing your super from GESB by transferring it to another fund
Taxation can be complex. We recommend you speak to a qualified taxation or financial adviser before withdrawing your super.
Paying tax when withdrawing super from West State Super and Gold State Super
Withdrawing a lump sum
Tax will apply depending on your age and the components of your super benefit.
Taxable components on lump-sum benefits
You may have a 'tax-free component', and two different types of taxable components. These are known as a 'taxable component - taxed element', and a 'taxable component - untaxed element'.
You won't be subject to tax on the 'tax-free component'.
If you're aged 60 or over, you won't pay tax on the 'taxable component - taxed element'.
If you're aged under 60, you may be taxed on the 'taxable components - taxed and untaxed elements' of your benefit. The amount you pay will depend on the below age criteria, including whether you've reached your Commonwealth preservation age - the legal age when you can access your super.
Tax payable on lump-sum benefits for West State Super and Gold State Super
| Age | Tax withheld (including 2% Medicare Levy) | |
|---|---|---|
| Taxable component – taxed element | Under Commonwealth preservation age | 22% |
Commonwealth preservation age – 59 | First $235,0001 = 0% Balance = 17% | |
60+ | Nil | |
| Taxable component – untaxed element | Under Commonwealth preservation age | First $1.705 million1 = 32% Balance = 47% |
Commonwealth preservation age – 59 | First $235,0001 = 17% From $235,0001 up to $1.705 million1 = 32% Balance = 47% | |
60+ | First $1.705 million1 = 17% Balance = 47% | |
Withdrawing through a retirement income stream
If you transfer your benefit to an allocated pension to receive an income stream, you'll be taxed on the 'taxable component - untaxed element' at a rate of 15% when it's received into the pension account.
A $1.705 million untaxed limit (or cap) per super fund applies to transfers to retirement income (RI) products, such as our RI Allocated Pension. If you go over your untaxed plan cap, then you'll be taxed 47% on the excess before your money is transferred to an allocated pension account. The excess amount after tax is included in your tax-free component.
Rolling over to another fund
If you transfer all, or any portion, of your benefit to a taxed super fund, the tax treatment will be the same as if you transferred to a retirement income account (see above).
The untaxed plan cap as outlined above will apply.
Paying tax when withdrawing super from GESB Super
Withdrawing a lump sum
If you're aged 60 or over when you withdraw your super, you won't pay any tax.
If you're aged under 60, tax will apply depending on your age and the components of your super benefit.
Tax components on lump-sum benefits
Your benefit may consist of a 'tax-free component' and a 'taxable component - taxed element'.
You won't be subject to tax on the 'tax-free component'.
You may be taxed on the 'taxable component - taxed element' of your benefit depending on the below age criteria, including whether you've reached your Commonwealth preservation age - the legal age when you can access your super.
Tax payable on lump-sum benefits for GESB Super
| Age | Tax withheld (including 2% Medicare Levy) | |
|---|---|---|
| Taxable component – taxed element | Under Commonwealth preservation age | 22% |
Commonwealth preservation age – 59 | First $235,0001 = 0% Balance = 17% | |
60+ | Nil | |
Withdrawing through a retirement income stream
If you transfer your super to an allocated pension to receive an income stream, no tax will apply.
A limit (or cap) of $1.9 million applies to transfers to retirement income (RI) products, such as our RI Allocated Pension.
Rolling over to another fund
If you transfer all, or any portion, of your benefit to another super fund, no tax will apply when you transfer your benefit.
Related information
How are your contributions taxed?
Learn about contributions taxThe way your contributions are taxed depends on the type of fund you're in and the type of contribution you make.
How much can you contribute?
Use our contributions calculatorUse our calculator to figure out how much you can contribute, and the best way to go about it.
Are you paying more tax than you need?
Provide us with your tax file number (TFN) so you don't pay more tax than you need.
It's easy to lodge your TFN in Member Online. You can also complete our Tax file number form or call us on 13 43 72.
1 For the 2023/24 financial year, indexed annually in line with Average Weekly Ordinary Time Earnings, in increments of $5,000 rounded down. The untaxed plan cap applies for each untaxed scheme you are a member of.
More information
- Find definitions of tax terms on our jargon explained page
- Read our Tax and your super brochure
- Learn about how tax applies in retirement
Need help
- Attend one of our retirement planning seminars
- Register for one of our webinars
- Call us on 13 43 72
Thank you for printing this page. Remember to come back to gesb.wa.gov.au for the latest information as our content is updated regularly. This information is correct as at 27 April 2024.