Super for Self-Employed

If you’re a Contractor, Partnership or Sole Trader , you are generally don't have to make super guarantee (SG) payments for yourself. However  if you did then you can get full tax deduction if you are under age of 75

Those aged 65 to 74 will still need to meet the work test in order to be eligible to make a contribution and claim a tax deduction. Keep in mind that contributions you make may attract extra tax if they exceed the contributions limit for that year.

You may also be eligible for the super co-contribution payment. This 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 up to certain limits, unless you have claimed your contribution as a tax deduction.

Make sure your super fund has your tax file number (TFN). If it doesn't:

  • Your super contributions will be taxed an additional 34%
  • 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. 

How Much Super you should pay?

There are two basic ways of making your own self-employed super contributions:

  • If you are paying yourself a wage, you should pay at least 10% of your Gross income to your super fund or
  • If you pay yourself out of your business income, you should pay a lump sum contribution when your cash flow allows for it.