{"id":1608,"date":"2020-02-26T13:40:00","date_gmt":"2020-02-26T02:40:00","guid":{"rendered":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/2020\/02\/26\/super-for-self-employed-people\/"},"modified":"2020-02-26T13:40:00","modified_gmt":"2020-02-26T02:40:00","slug":"super-for-self-employed-people","status":"publish","type":"post","link":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/2020\/02\/26\/super-for-self-employed-people\/","title":{"rendered":"Super for self-employed people"},"content":{"rendered":"<div class=\"pagesummary\">\n<p>You don&#8217;t have to pay yourself super, but when you retire, you might be glad you did.<\/p>\n<p>You can make regular or lump sum payments, can usually claim a tax deduction on contributions, and may be able to save tax.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" alt=\"\" height=\"300\" src=\"http:\/\/internal.clientcommunity.com.au\/uploaded\/level\/2063\/myob-selfemployed.jpg\" width=\"570\" \/><\/p>\n<\/p><\/div>\n<h3>Why pay yourself super<\/h3>\n<p>There are advantages to contributing to super:<\/p>\n<ul>\n<li>\n<p>You save for your retirement.<\/p>\n<\/li>\n<li>\n<p>You can claim a tax deduction for super contributions.<\/p>\n<\/li>\n<li>\n<p>Super contributions are taxed at 15%, so you may save tax depending on your situation.<\/p>\n<\/li>\n<li>\n<p>Super investments usually get better returns than bank savings accounts, so your savings will grow faster.<\/p>\n<\/li>\n<\/ul>\n<div class=\"calculatorLink clickable\">\n<p><a href=\"https:\/\/moneysmart.gov.au\/how-super-works\/superannuation-calculator\" target=\"_blank\" rel=\"noopener noreferrer\">Use super calculator<\/a><\/p>\n<p>Work out how much you can save for your retirement.<\/p>\n<\/p><\/div>\n<h3>How to pay yourself super<\/h3>\n<p>If you already have a super fund, check that you can make contributions when you&#8217;re self employed. You&#8217;ll need to give your fund your\u00a0tax file number (TFN) so they can accept contributions.<\/p>\n<p>If you don&#8217;t have a fund, see\u00a0<a href=\"https:\/\/moneysmart.gov.au\/how-super-works\/choosing-a-super-fund\" target=\"_blank\" rel=\"noopener noreferrer\">choosing a super fund<\/a>.<\/p>\n<h3>Transfer a regular amount or a lump sum<\/h3>\n<p>There are two ways to contribute, depending on how you pay yourself. If you receive:<\/p>\n<ul>\n<li>\n<p><strong>A wage<\/strong>\u00a0\u2014 set up a regular transfer into super from your before-tax income.<\/p>\n<\/li>\n<li>\n<p><strong>Income from business revenue<\/strong>\u00a0\u2014 transfer a lump sum when you have enough cash flow.<\/p>\n<\/li>\n<\/ul>\n<h3>Tax deductions for super contributions<\/h3>\n<p>You can claim a tax deduction for contributions you make from your pre-tax income (known as\u00a0concessional contributions). You benefit because you reduce your taxable income.<\/p>\n<p>To claim a tax deduction, you need to send a &#8216;Notice of intent to claim&#8217; form to your super fund before the end of the financial year. Contact your fund to find out how much time you need to allow for processing.<\/p>\n<p>See\u00a0<a class=\"external-link\" href=\"https:\/\/www.ato.gov.au\/Individuals\/Super\/In-detail\/Growing-your-super\/Claiming-deductions-for-personal-super-contributions\/\" target=\"_blank\" rel=\"noopener noreferrer\">claiming deductions for personal super contributions<\/a>\u00a0on the Australian Taxation Office (ATO) website for detailed information.<\/p>\n<p>Always confirm the details of any super contributions with your accountant or tax agent.<\/p>\n<h3>How much to contribute to super<\/h3>\n<p>As a guide, employers contribute at least 9.5% of an employee&#8217;s earnings to super.<\/p>\n<p>There are limits to how much you can contribute each financial year:<\/p>\n<ul>\n<li>\n<p>up to $25,000 in\u00a0concessional contributions\u00a0\u00a0(from your pre-tax income, for which you can claim a deduction), and<\/p>\n<\/li>\n<li>\n<p>up to $100,000 in\u00a0non-concessional contributions\u00a0\u00a0(from your after-tax income)<\/p>\n<\/li>\n<\/ul>\n<p>If you&#8217;re on a low income, you may be eligible for government super contributions, see\u00a0<a href=\"https:\/\/moneysmart.gov.au\/grow-your-super\/super-contributions\" target=\"_blank\" rel=\"noopener noreferrer\">super contributions<\/a>.<\/p>\n<p>\u00a0<\/p>\n<p><span style=\"font-size: 10px\"><a href=\"https:\/\/moneysmart.gov.au\/grow-your-super\/super-for-self-employed-people\" target=\"_blank\" rel=\"noopener noreferrer\">Source : ASIC&#8217;s MoneySmart<\/a><\/span><\/p>\n<p><span style=\"font-size: 10px\">Reproduced with the permission of ASIC\u2019s MoneySmart Team. This article was originally published at\u00a0<a href=\"https:\/\/moneysmart.gov.au\/grow-your-super\/super-for-self-employed-people\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/moneysmart.gov.au\/grow-your-super\/super-for-self-employed-people<\/a><\/span><\/p>\n<p><span style=\"font-size: 10px\">Important note: This provides general information and hasn\u2019t taken your circumstances into account.\u00a0 It\u2019s important to consider your particular circumstances before deciding what\u2019s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete.\u00a0You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.\u00a0 Past performance is not a reliable guide to future returns.<\/span><\/p>\n<p><span style=\"font-size: 10px\">Important<\/span><br \/><span style=\"font-size: 10px\">Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author.<\/span><\/p>\n<p><span style=\"font-size: 10px\">Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents\/information contained within the linked site(s) accessible from this page..<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You don&#8217;t have to pay yourself super, but when you retire, you might be glad you did. You can make regular or lump sum payments, can usually claim a tax deduction on contributions, and may be able to save tax. Why pay yourself super There are advantages to contributing to super: You save for your [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[19],"tags":[],"class_list":["post-1608","post","type-post","status-publish","format-standard","category-general-articles","entry"],"_links":{"self":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts\/1608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/comments?post=1608"}],"version-history":[{"count":0,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts\/1608\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/media?parent=1608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/categories?post=1608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/tags?post=1608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}