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).
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