GESB Super and tax
GESB Super is a taxed scheme.
This means that like most other Australian super funds, tax is deducted from certain types of contributions (known as concessional or before-tax contributions) and from investment earnings, while your money is accumulating (or ‘building up’ over time).
Tax applies in different ways to different types of contributions
While the Commonwealth government provides special tax rates to help you use your super to save for retirement, there are some limits, known as caps. Here’s a guide to how tax applies to your GESB Super contributions.
GESB Super tax treatment
Contribution type | General treatment | Contribution caps2 for 2023/24 financial year |
---|---|---|
Concessional (before-tax) contributions
| Taxed at 15% when the contribution is made, up to your concessional contributions cap. | This is an annual cap that limits the amount of concessionally taxed contributions you and your employer can make each financial year.
If you make contributions to super over your cap, then you may have to pay extra tax. Carry forward concessional contributions From 1 July 2019, the carry-forward rules allow you to make extra concessional contributions above the general concessional contributions cap. This means:
For example, the general concessional contributions cap in the 2018/19, 2019/20 and 2020/21 financial years was $25,000. It was $27,500 for 2021/22 and 2022/23 financial years. If you made $15,000 of concessional contributions in each of 2018/19, 2019/20, 2020/21, 2021/22 and 2022/23 you will have $55,000 of unused concessional contributions cap amounts carried forward that you can use to make additional concessional contributions above the general concessional contributions cap for the 2023/24 financial year, provided your total super balance at the end of 30 June 2023 was less than $500,000. The 2018/19 unused cap amount of $10,000 that is not used by the end of 2023/24 will expire. |
Non-concessional (after-tax) contributions
| No tax applies up to your non-concessional contributions cap. | Your non-concessional contributions cap is:
The amount available under the bring-forward rule depends on your total super balance as at 30 June in the previous financial year. For more information, visit the ATO website. |
Other contributions
|
Downsizer contributions | Not applicable |
Tax also applies to investment earnings
Taxed schemes, like GESB Super, need to pay tax on any money your super earns while it’s invested. The tax will generally be applied at a maximum rate of 15% and will be reflected in the unit price of each investment plan for GESB Super.
Factor tax into your retirement planning
If you’re planning for your retirement and considering taking your super out as a lump sum or transferring it into an allocated pension, such as our RI Allocated Pension, you need to be aware of the tax that applies in those scenarios. Find out more about which tax applies on benefits.
Do we have your tax file number?
If you don’t provide us with your tax file number (TFN), you might need to pay more tax on your super than is necessary and we may not be able to accept some of your contributions. This will also affect your eligibility for the Super Co-contribution.
You can lodge your TFN using Member Online, by completing a Tax file number form or by calling your Member Services Centre on 13 43 72.
1 SuperRatings Smart database as at 31 December 2023. Based on an average balance of $50,000, fees for the My West State Super plan, the My GESB Super plan and the RI Allocated Pension Balanced plan are below the industry median. Fees includes administration, investment, and transaction fees and costs. Fees may change periodically.
2 Contributions caps are applied per person, not per fund, which means contributions made to other funds are generally included in the caps.
3 For the 2023/24 financial year. The concessional contributions cap is indexed annually in line with Average Weekly Ordinary Time Earnings in increments of $2,500 rounded down.
4 For the 2023/24 financial year, indexed annually. This cap is equal to four times the general concessional contributions cap (which is currently $27,500).
5 The amount available under the bring-forward rule depends on your total super balance as at 30 June in the previous financial year. Where the bring-forward rule has been triggered, the future years' entitlements are not indexed and the contributions must be made before you turn 75 or within the 28 days following the end of the month in which you turn 75 years old. For more information, please read the Contributing to your super brochure.
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 29 March 2024.