GESB Superannuation Specialists
GESB is a WA Government statutory authority of super savings of current and former public sector employees. With currently around 240,000 members and over $30 billion in funds under management (as at 31 December 2019), GESB is the largest super fund in WA and one of the largest in Australia.
I have been involved in helping clients navigate the complexities of GESB for the past 20 years commencing while I was working in the Commonwealth Bank which at the time was still considered to be the bank closely related to the government. My personal exposure has been through my partner who is currently a public sector employee in West State.
GESB can most easily be separated into three distinct funds with the differences between the super funds as follows
Gold State is a defined benefit fund meaning your superannuation benefit is calculated by a formula based on your final income and the number of years served. It is a Constitutionally Protected Fund (CPF). CPFs are untaxed super funds that do not pay tax on contributions or earnings they receive. Gold State is not market linked and is backed by the Western Australian Government. Being an untaxed scheme, you do not pay tax until you rollover or access your benefit. Gold State Super also has no extra fees and includes some minimal Death & TPD insurance at no cost. Gold State Super was closed to new members on the 29th December 1995.
West State is a market linked, constitutionally protected untaxed fund. This means that you do not pay contributions tax when making concessional contributions. You do however pay tax when accessing your benefit or rolling out to an alternative super fund. West State is also not restricted to annual concessional caps. Instead, West State has a lifetime limit. West State Super was closed to new members in April 2007.
GESB Super is market linked and is a taxed super fund. This means that concessional contributions are taxed upon entry to the fund. GESB Super has contribution limits in line with ‘regular’ superannuation funds. GESB Super has been open since April 2007.
“Too many times we have seen ex-government employees who previously held Gold State and West State plans, have been told to roll out of their west state accounts, not knowing that there are strategies to reduce the funds tax bill”.
The need for financial advice
GESB West State Super and Gold State Super are unique and complex super funds. Before making a decision regarding contributing in, or rolling out of a GESB West State or GESB Gold State super fund, that will most likely be irreversible, it is imperative you get financial advice from a qualified adviser first, to help you make that fully informed decision.
We can help you with the following:
- GESB Gold State member contribution strategies.
- Strategies to reduce capital gains tax from the sale of investment properties, shares etc. using your West State Super account.
- Do you have a Pre-1 July 1983 service date which can be used to maximise your tax-free component?
- Maximising tax deductible contributions to West State Super to reduce your income tax. Special limits apply to West State Super that is unique to members.
- Consequences and implications of a lump sum withdrawal versus a rollover of West State/Gold State.
- Converting your West State and Gold State to appropriate income streams at retirement.
- Converting your Gold State Super to a non-market linked income stream at retirement.
- Your GESB West State and Gold State benefits in the context of your overall retirement plans and needs.
- Your GESB West State and Gold State benefits and their impact on the Australian Age Pension.
- Should you have your employer contributions paid to a non-GESB super fund?
- What are the advantages of having your employer contributions paid to GESB?
We specialise in GESB superannuation
If you are looking for more advice regarding your GESB superannuation, contact us today for an initial consultation. Call our office on 08 9535 7708.
Find out more about GESB superannuation https://www.gesb.wa.gov.au/