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Secrets to success for GESB members

Neil’s story: A bigger nest egg with less tax to pay

As a teacher, I was excited about retiring so I could travel outside of school holidays for a change. But I put it off for quite a while because I didn’t think I’d have enough money to see me through. I suppose that was a good thing really because it made me decide to get my super sorted out well before I retired.

I did have a bit of an idea about what was needed, like paying extra contributions or a lump sum into my fund. But I’m not financially minded and knew I could lose out later if I didn’t get it right. Meeting with my StatePlus planner, Mark, was brilliant because he really knew his stuff and made sure I did things at the right time to get the best outcome.

In the end, I’m around $4,500 better off from tax savings I made by making salary sacrifice payments in the run up to retirement. I don’t usually recommend companies, but a friend of mine was worried all his money would somehow disappear when he retired. I suggested seeing Mark, so he can start planning for a secure retirement he can actually look forward to.

To find out more about how Neil saved on tax, download this factsheet.

GESB Secret

If you’re with West State Super, you have significant advantages when it comes to reducing tax and boosting your retirement benefits.

The West State Super (WSS) fund is an exception to the rule for pre-tax contributions. For most other funds, an annual cap ($25,000 at the time of writing) applies for pre-tax payments into super. There is no annual limit on pre-tax payments into WSS but rather a lifetime limit of $1.445 million that you can accrue concessionally. So, you can make substantial tax savings with salary-sacrificed contributions throughout your working life.

If you’re working past preservation age, you can take advantage of a Transition to Retirement (TTR) strategy that may boost your super and make greater tax savings. Income from your TTR pension after 60 is tax free. By contributing more to your super than you’re drawing from your TTR, your tax liability can be lower and your super keeps growing with minimal impact on your overall income level.

The advantages of this strategy for WSS members and their super are significant so it’s important to continue making pre-tax contributions through your public sector employer.

To make the most of your GESB scheme, register for a free seminar today.

This information is general and does not take into account your personal objectives, financial situation or needs. Before making any decisions based on this information you should consider its appropriateness to you. We strongly recommend that you consult a financial planner before taking action based on this information. Further information and disclosures can be found in our Financial Services Guide.

Quiz: Could you save on tax?

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