Super for the self-employed
If you’re a sole trader or a partner in a partnership, you don’t have to make super contributions to a super fund for yourself. However, you may want to consider super as a way of saving for your retirement.
Most self-employed people can claim a full deduction for contributions they make to their super until age 75. Keep in mind that contributions you make may be subject to extra tax if they exceed the contributions limit for that year.
You may also be eligible for the super co-contribution payment. The super co-contribution helps eligible low- to middle-income earners save for their retirement. If you’re eligible and you make personal super contributions, the government will match your contribution with a co-contribution up to certain limits.
Make sure your super fund has your TFN, otherwise:
Your super contributions will be taxed an additional 31.5%
Your fund won’t be able to accept personal contributions from you, which means you may miss out on any super co-contribution you’re eligible for
It will be harder to keep track of your super.
DISCLAIMER: This is general advice only and does not take into account your objectives, situation or needs. This advice is may not be appropriate in all circumstances. Details included in this article are subject to change, while we endeavour to keep all information up to date, Archer Solutions Pty Ltd can’t make any guarantees as to the accuracy of this information.