Gold State Super and tax
Gold State Super is an untaxed scheme.
Unlike most other Australian super funds, Gold State Super doesn’t pay tax on any contributions or investment earnings. You will only be taxed when you access the money in your account. Untaxed does not mean ‘no tax’, so it can be useful to think of it as deferred tax.
For a breakdown of your tax components i.e. taxed vs untaxed, call your Member Services Centre on 13 43 72 or use our Live chat and ask for a ‘benefit estimate’.
There’s a limit to super tax concessions
While the Commonwealth Government provides concessional tax rates (tax concessions) to help you use your super to save for retirement, there are some limits, known as caps.
Employer contributions (including salary sacrifice) to your Gold State Super account aren’t capped, however they do count towards your concessional (before-tax) contributions cap for contributions to a taxed scheme such as GESB Super.
With Gold State Super, there’s an untaxed plan cap of $1.705 million2 per super fund, which applies to the untaxed element of your benefit. This is the amount that can be paid as a lump sum or transferred to a taxed fund and still be subject to tax concessions.
Different tax rates apply in different situations
When you can access your Gold State Super benefit, a different rate of tax applies depending on:
- How your benefit is paid
- Your age, in particular your Gold State Super preservation age if you are under 60
- What makes up your benefit - tax applies to the taxable component - untaxed element but it does not apply to the tax-free component
Here’s a summary of how tax applies to the untaxed element of your super benefit.
Option 1. You take your benefit as cash (known as a ‘lump sum’)
| Benefit component | Age | Tax withheld rate (including 2% Medicare Levy) |
|---|---|---|
Taxable component - untaxed element | Under Commonwealth preservation age | First $1.705 million2 = 32% Balance = 47% |
Commonwealth preservation age - 59 | First $235,0002 = 17% From $235,0002 up to $1.705 million2 = 32% Balance = 47% | |
60+ | First $1.705 million2 = 17% Balance = 47% |
Option 2. You roll over part or all of your benefit to a taxed super fund
You will be taxed on the untaxed element by the new fund at a rate of 15% when it is received.
However, if you go over your untaxed plan cap, ($1.705 million2 per super fund) then we will deduct 47% tax from the excess before rolling over your money.
Option 3. You transfer your super to an account that gives you a regular retirement income
Tax will be deducted from the untaxed element at a rate of 15% upon transfer.
However, if you go over your untaxed plan cap ($1.705 million2 per super fund) then we will deduct 47% tax on the excess before completing the transfer.
Gold State Super is a scheme unlike most other super funds. If you would like to discuss your options, you might like to consider our Retirement Options Service for information tailored to your situation.
Extra tax applies if you access your benefit too early
Your benefit is taxed according to your age, in particular your Commonwealth preservation age which is different to the age at which you can access your benefit. Find out more in when can I get my super.
Did you work for the WA public sector before 1 July 1983?
If you worked for the WA public sector before 1 July 1983, part of your benefit might be tax-free if you take it as a lump sum or roll it over to a taxed fund. For more information, visit the pre-1 July 1983 service and tax page.
Do we have your tax file number?
If you don’t provide us with your tax file number (TFN), you might 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.
Do you earn more than $250,000 a year?
From the 2012/13 financial year, if your annual income plus low tax super contributions are more than $250,000 a year, you will pay an extra 15% tax on any low tax contributions over $250,000. For more information, visit the Division 293 tax page.
1 If you stop working in the WA public sector or reduce your work hours to less than one hour a week, you will no longer be an active Gold State Super member. However, if you re-join the WA public sector or increase your work hours within 12 months, you may apply to continue your membership.
2 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.
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 26 April 2024.