Although it’s compulsory to pay any staff you employ regular super guarantee payments, when you’re self employed, for example as a sole trader or in a partnership, paying yourself super is optional.

It’s up to you to set up your own super to save for your future and its best to make a plan early so you can build for a comfortable retirement. 

At BUSSQ we understand what life’s like for self employed workers in the building and construction industry and we’re here to help you access the benefits of saving for your retirement with super.

The benefits of super

If you’re self employed saving for your retirement by contributing to super has benefits.

Super contributions are generally taxed at 15%

Contributions to super are generally taxed at a concessional rate of 15%, which is less than the lowest marginal tax rate.

Contributions may be taxed an additional 15% if your combined income and super contributions for a financial year are more than $250,000. 

You can make contributions as regular payments or irregular lump sum contributions whenever you can afford them.

If you are aged 67-74  there are certain criteria you need to meet to meet to claim a tax deduction for a personal non-concessional contribution.  Find out more about this criteria and other types of contributions.   

Super contributions can be tax deductible

You can claim a tax deduction for personal contributions you make into super up to the annual concessional contributions cap.

The concessional contributions cap is currently $27,500 per year however you may be eligible to contribute more under the carry forward rule or with catch up contributions.

Learn more about claiming a tax deduction for your personal contributions. 

Tax free income

During retirement the earnings on investments in a Retirement Income account are tax free and in some cases the income that you draw from these accounts is also tax free. These benefits become available to you once you satisfy a 'condition of release' such as, you reach your preservation age and permanently retire, or you are over 65 years of age (you may still be working).

Capital gains tax exemption

When selling active business assets under the small business retirement exemption you can reduce or be exempt from any capital gains tax liability if you contribute the proceeds from the sale into a complying super fund. There are eligibility criteria you must meet to access this exemption.

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BUSSQ members have access to personal financial advice on insurance, investment choice, contributions and retirement at no extra cost*.  

Be you with BUSSQ Building Super

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*Personal advice is limited to BUSSQ products. The cost of this advice is included in the BUSSQ Trustee related costs and is provided by Link Advice Pty Ltd (ABN 36 105 811 836 AFSL 258145).