Self employed and super

[Past-Member]

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I have paid into my own personal superannuation account for a number of years as there is no-one else to give me any as I work for myself. I was reading some more about it tonight as it’s coming up to the end of the financial year soon.

Just thought I’d remind others in a similar situation that if you have had a good year, (and let’s hope most of us are working towards that), you can not only contribute monthly to that account as a deduction, but also make extra donations to bring your tax down legitimately, but increase your super.

This is an extract from the Australian Super website:
http://www.australiansuper.com/superannuation/adding-to-my-super/self-employed-payments.aspx

‘Got your own business? We’ll take care of your super
If you are a sole trader or a partner in a partnership, you are considered self-employed in terms of superannuation.

If you employ yourself through a limited company or a trust, and you make superannuation guarantee payments into your super account, you are not considered self-employed in terms of your superannuation.

Research shows that over 25% of self-employed people have no super savings. While you’re building up your business, it is important to build up your super too.

The good news is you can claim a full tax deduction for your personal super contributions up to $25,000 a year. If you’re an employer, you can claim a deduction for all contributions you make for employees under the age of 75.

You can claim a tax deduction for personal contributions if:

• You earned less than 10% of your total assessable income, reportable fringe benefits and reportable employer super contributions as an employee and
• You’re a member of (a valid Super fund) and your contributions are in your super account before the end of the financial year.’

It would be really great if there were any experts in this in FS who could advise, or write an article about this important self funding of super.

Cheers.

[Author]

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