West State Super unique features

Your West State Super account is known as a market-linked accumulation scheme. This makes it similar to most other super funds, including GESB Super. However, one of the things that make it unique is that it’s an untaxed scheme.

It’s important that you know about the tax considerations that apply to your West State Super account. Here are some more details and information about the features of this scheme.

It’s an untaxed scheme

Untaxed does not mean ‘no tax’, so it can be useful to think of it as deferred tax.

In a taxed fund, a 15% tax is applied to employer and salary-sacrifice contributions, and a tax of up to 15% applies to investment earnings. In an untaxed fund, such as West State Super, these contributions and earnings are taxed at 15% when your benefit is paid to you or transferred to a taxed fund.

Learn more about the tax components for West State Super.

Your investment earnings are reported before tax

Having your super invested in an untaxed scheme means that you earn pre-tax investment returns on the full amount of your contributions over the life of your super account.

Most other super funds pay tax and report the returns after investment expenses and tax are taken out. Your West State Super account is different, as your returns are reported after only the investment expenses have been taken out - tax has not been paid yet. This makes it hard to compare the reported investment returns of your West State Super account with most other super funds.

Contribution caps are different compared to taxed funds

With most super funds, concessional (before-tax) contributions made through an employer or by salary sacrifice count towards an annual cap. Any contributions made in excess of this cap are taxable at the member’s marginal tax rate.

Concessional contributions to West State Super and Gold State Super are not capped, but they count towards your cap when making these contributions to a taxed scheme. For example, if you made $50,000 concessional contributions to West State Super (including your employer contributions) you would not be able to make any further concessional contributions to a taxed scheme. An untaxed plan cap of $1.705 million⁴ per super fund applies to the untaxed benefit in West State Super. For more details on your West State Super's untaxed plan cap, see the Tax and super brochure.

Learn more about your West State Super’s untaxed plan cap.

Any tax advantages of West State Super depend on the type of contributions and other factors

Your West State Super account could give you a financial advantage for your concessional (before-tax) contributions when compared to a taxed fund. This means you may receive a higher benefit over time from your employer or salary sacrifice contributions.

On the other hand, the tax arrangements for this type of scheme may result in tax disadvantages for your non-concessional (after-tax) contributions when compared to a taxed fund.

The overall impact on your final benefit will depend on a number of factors, including the type of contributions you make, how your contributions are invested and the length of time your contributions have been invested in your West State Super account.

You can’t receive a low-income superannuation tax offset

The low-income superannuation tax offset (LISTO) is a Commonwealth Government payment of up to $500 per financial year, calculated at 15% of the concessional (before-tax) contributions for individuals on adjusted taxable incomes of up to $37,000.

As contributions to your West State Super account don’t get taxed, any before-tax contributions made into your account are not eligible for this government contribution.

You might be able to access your super if you become disabled

With your West State Super account, you might be able to access you super benefit if you become partially and permanently disabled. This option isn’t available with most other super funds.

For more information on partial and permanent disablement benefits, please refer to page 29 of the Insurance and your super brochure.

Additional statutory insurance may apply

Your level of your Death and TPD benefit may be adjusted if these conditions all apply:

• You’re a covered risk benefits member, as defined in the State Superannuation Regulations 2001 (WA)
• You’re an eligible statutory West State Super member
• You’re under 60 and have not opted out of your Death or TPD cover

We will pay a top up if your entitlement under the state superannuation legislation exceeds the amount payable by the Insurer.

For more information on statutory insurance, please call your Member Services Centre on 13 43 72.

Learn more about your West State Super insurance arrangements.

You might have a Minimum Benefit Guarantee

Before July 2001 West State Super accounts were credited with an annual earnings rate of CPI plus 2%. From 1 July 2001, member investment choice was introduced and West State Super became a market-linked scheme.

If your West State Super account had a balance before 1 July 2001, you have a Minimum Benefit Guarantee. This means that any future benefit will be paid at whichever amount is higher, out of:

• Your account balance at 30 June 2001 plus subsequent contributions and investment earnings
• Your account balance at 30 June 2001 compounded annually at CPI plus 2% less certain types of payments

If this applies to you, you might benefit from the guarantee if you have stopped receiving employer contributions or making personal contributions to your West State Super account.

For more information about the Minimum Benefit Guarantee, please call your Member Services Centre on 13 43 72.

West State Super is closed to new members

If you choose to close your account by cashing in or transferring your entire balance, you can’t re-join the scheme at a later date. If you already have a West State Super account and leave the WA public sector, we can only accept employer contributions if you return to work in the WA public sector and your account is still open.

Find out more about West State Super

• West State Super investments
• West State Super insurance
• West State Super fees and other costs
• West State Super and tax
• West State Super important documents

Or for full details of West State Super, please read the West State Super Product Information Booklet.

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 This includes lost and unclaimed account transfers to the Australian Taxation Office (ATO).
3 If you are a Gold State Super member and currently employed in the WA public sector, you may be eligible to open a West State Super account, provided you have pre-1 July 1983 service.
4 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.