SUPER FOR THE SELF EMPLOYED
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 taxed at 15%
Contributions to super are taxed at a concessional rate of 15%, which is less than the lowest marginal tax rate.
You can make contributions as regular payments or irregular lump sum contributions whenever you can afford them.
Super contributions can be tax deductible
You can claim a tax deduction for contributions you make into super up to the concessional contributions cap.
The concessional contributions cap is currently $25,000 per year however you may be eligible to contribute more under the carry forward rule or with catch up contributions.
Tax free income
During retirement the earnings from 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 reach your preservation age.
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.
What is right for you?
Deciding what’s best for you and how you should save for your retirement can be difficult and this is where the value of the right financial advice comes in. BUSSQ built Skylight Financial Solutions to provide affordable financial solutions to help you take control of your financial future.
Get advice that's right for your situation
We all have different needs when it comes to financial advice but knowing you can choose someone that will have your best interest in mind will be a great place to start.
Would you like to find out more?
Enter your details to talk to someone about joining BUSSQ, starting a business, super obligation, transferring your accounts across or if you are interested financial advice. We will be in touch within two business days.