Home – New Forums Starting your journey Advice Needed – Tax and Super Payments Reply To: Advice Needed – Tax and Super Payments

  • Total posts: 1,815

Maccy – it’s a hard question to answer. It also depends on age.

In my own experience I have a personal Super Fund as a solo with http://www.australiansuper.com.au in which I put a small amount each month. I used to top it up in June each year according to what money I had over. It’s certainly nothing to retire on. Nearing retirement age has nothing to do with it as my husband has long been beyond retirement age and if you don’t earn massive incomes you have nothing extra to deposit anyway.
Due to bad experiences (particularly with my husband’s Super which was mainly lost in the economic crisis) I tend to think other investments would be a better option to pursue and have been thinking about that. As we are a lot older we do not have the time to build up another Super balance the way others might have if they began young. (It didn’t exist when we were young.) You also get to an age where you think, ‘when is the rainy day?’ and make decisions to spend what you do have making your life and home more comfortable.

There is a good article about Super here http://www.flyingsolo.com.au/finance/financial-management/planning-for-retirement which is worth considering.

For me, my circumstances are different and I do not have the means to boost my Super with massive contributions, no matter what the government says, which are very unrealistic for many solos.

I think it’s great that you have the different accounts and are being diligent with your savings. If I was you, I would probably balance it by putting a little in super and a little in investments like BT Funds or similar. It really depends on your age, your income and what you project you might need. (This is not financial advice.)

Perhaps a chat with your accountant would be a good idea.

Re Tax – if you can do your accounts properly each month, deduct your definite work expenses (not your depreciation) from your income that month and put away 25-30% of what is left for tax. Then, if you have anything over at the end of the year it will be a bonus. And most definitely use an accountant to do your tax. It can make a big difference when they really know what they are doing.