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Super for the Self-Employed

When you are self-employed, it is just as important to start saving for your future. Because you don’t have an employer putting money away into a super fund for you, it is up to you to find a way to be prepared for your retirement years.

So, how can you save for your future when you are self-employed?   

Super is a tax-effective way to save money for your retirement.  Contributions you make into super for yourself are taxed at fifteen percent, instead of your individual marginal tax rate (which can be much higher).  

However, you must remember a few things when it comes to super:

  • Before you start paying into a super fund, research which will be the right fund and investment option for you. There are many different options to choose from so it might be helpful to talk to someone to ensure that your money will continue to grow in a way that you are comfortable with.
  • You must pay your super before June thirtieth in order to get a tax deduction for that year. And notify your super fund of your intention to claim a deduction.
  • There is a cap on how much money you can put into your super. If you decide to put more money into your super than the limit, you will have to pay extra tax. This is why you should start saving for your retirement as soon as possible.
  • Look into the benefits you may be able to get from the government. The Australian government will pay a certain amount for every dollar that you put into your super, up to five hundred dollars. This will help your super grow so be sure to take advantage if you are eligible.

Self-employed business owners often are so busy that they forget about their future. However, that is a big mistake. By contributing money into super, you are going to be ready to retire comfortably, as well as save money on your taxes now! Contact us or check out our blog to find out more about super for small business owners.