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If you are a doctor that, in the past, has been employed by a public hospital, you may have a GESB West State account.
It’s possible you haven’t looked at it for a while but there is a good reason you need to.
GESB West State is a very unique super fund with benefits that are not available to us ordinary folk. You can find out more about the unique benefits of GESB here.
One of the most attractive benefits of GESB is the large amount of tax deductible contributions that you can make. 
Most of us are limited to concessional (tax deductible) contributions of $27,500 per year, but those who have a GESB West State account don’t have an annual cap but instead, have a lifetime cap. This lifetime cap as at 1 July 2023 is $1.705 million. That is, you could potentially contribute up to $1.705 million in one year and receive an effective tax deduction (this is known as a concessional contribution).
However, there is a catch. To contribute to GESB West State and receive a tax deduction, you must be able to direct your salary, via salary sacrifice, to GESB. Only WA State employees (i.e. a public hospital) can contribute to GESB West State Super.
Now, firstly, this means that while you are working you should think twice about closing your GESB West State account. Once closed, your GESB West State account is gone forever and the unique benefits that came with it.
Secondly, if you are currently working or thinking of returning to the public sector, you should be considering whether you should be utilising GESB to its full potential.
It can be a complex area and you should seek advice before doing anything. But if you are working for the WA State or thinking of returning, you should consider GESB for the following reasons:
- It’s a tax effective way to be able to grow your superannuation. While the contribution effectively provides you with a tax deduction, the eventual tax of GESB West State may only be 15%. If you are on the highest marginal tax rate you can save up to 32% in tax.
- A capital gains event like selling an investment property adds to your assessable income and increases your tax. Salary sacrificing, if planned correctly, can help you alleviate at least some of the tax.
FOR MORE INFORMATION
If you would like to learn more about the topics discussed in this article, please contact your local RSM financial adviser.
Note: past performance is not an indicator of future results.
This article has been prepared by RSM Financial Services Australia Pty Ltd ABN 22 009 176 354, AFS Licence No. 238282.
As everyone's circumstances are different and this article doesn't take into account your personal situation, it is important that you consider the above in light of your financial situation, needs and objectives, and seek financial advice before implementing a strategy.
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