Super Guide for the self-employed

Self-employed individuals are not required to set aside money to pay superannuation contributions. Self-employed individuals can still take advantage of the superannuation laws by making tax-deductible super contributions and/or non-concessional (after-tax) super contributions.

Such individuals can also take advantage of the co-contribution scheme, and/or can potentially take advange of the small business retirement exemption and other retirement-related incentives. For an individual to be able to make tax-deductible super contributions, they need to be: wholly self-employed as a sole trader or in a partnership; or not employed; or, earn part of their income as an employee but earn less than 10% of their total income from work as an employee.

The employee 10% income test applies even when an employer has paid Superannuation Guarantee on this employee-based income. If a self-employed individual has structured his or her business as a company however, then they must pay Superannuation Guarantee to eligible employees (including himself or herself).

Set out below are all SuperGuide articles explaining Super Guide for the self-employed.

Tax-deductible super contributions: Claim no more than your income

Q: If I make a personal concessional payment of $30,000 (tax-deductible) into my super fund and my personal taxable income for 2015/2016 is $20,000, are there possible tax penalties because I’m claiming $10,000 more than my taxable income?I suggest you chat to a registered tax agent, typically … [Read more...]

Who can make tax-deductible super contributions?

Note: From 1 July 2017, the Coalition, if it wins the 2016 Federal Election, intends to allow all individuals under the age of 75 to claim tax deductions for personal super contributions, subject to the concessional contributions cap, and taking account of previously-made super contributions for a … [Read more...]

Tax-deductible super contributions: Meeting the 10% income test

Q: I work for myself but I also have a part-time job. I have been told that even though I receive SG from my part-time employer, I can also make tax-deductible super contributions. Is that true? And if it is true, how does it work?Individuals who are self-employed, or who are not employed, are … [Read more...]

Managing capital gains tax with super contributions

Q: I am about to make a capital gain of about $200,000 on an investment property I have owned for several years. My marginal tax rate is 32.5% and I am an employee, and 43 years old. I want to contribute the equivalent of the capital gain to my super, which is not self-managed, so I can save some … [Read more...]

Co-contributions: Can I claim the tax-free bonus for the financial year that I retire?

Q: I’m aged 69 and I will retire in June 2016. Am I entitled to make a deposit into my super fund and receive the Government co-contribution for the 2015/2016 year?A: If an individual satisfies the age test, the work test and the income test relating to the co-contribution, then the individual … [Read more...]

Co-contributions: Can I claim the tax-free bonus as a property investor?

Q: I am not working but I source my income from rents derived from my property investments. Am I able to participate in the Government co-contribution scheme?For an Australian to be eligible for the co-contribution scheme they need to be earning 10% or more of their total income from eligible … [Read more...]