Super for the self-employed
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 super.
Do you need to pay super if you’re self-employed?
If you’re self-employed or a sole trader with an Australian Business Number (ABN), you don’t usually have to pay yourself super.
It’s up to you to set up your own super to save for your future and it's best to make a plan early so you can build for a comfortable retirement.
If you employ people, you'll still need to pay them super if they’re eligible.
The benefits of paying yourself super
While you’re not required to contribute to super if you’re self-employed, choosing to do so could make a big difference to your financial future.
Here’s some great reasons to consider it:
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 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 may be able to claim a tax deduction for personal contributions you make into super up to the annual concessional contributions cap.
The concessional contributions cap is currently $32,500 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 preservation age (60) and permanently retire, or you're over 65 years of age.
Capital gains tax exemption
When selling active business assets under the small business retirement exemption you may be able to 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.
Like to learn more?
Send us a message.
Complete the form if you'd like to talk to us about joining BUSSQ as an employer. We can also help with your super obligations, transferring your accounts across, or if you are interested financial advice (we'll get back to you within two business days).