• Self-employed contributions

  • To quality as self-employed by the Australian Taxation Office, you must earn less than 10 per cent of all your earnings from an employer. Tax deductions for self-employed super contributions are only available if they are paid to a complying fund, such as Australian Catholic Superannuation.

    Super for the self-employed

    If you’re a contractor, sole trader or self-employed, then you probably already know that superannuation is just as important for you as it is for regular employees.

    But since there is no compulsory Superannuation Guarantee to make sure you have regular contributions going into your super account, you will most likely need to be a lot more involved in your superannuation. Statistics show that up to 1 in every 4 self-employed Australians do not have a superannuation account. If you don’t put some of your income aside on a regular monthly basis, you may not have enough money to live on when you retire.

    Ross Clare & Andrew Craston. "Super and the self-employed". ASFA: the voice of super. May 2016, p.13. 

    Managing your own super contributions

    There are two basic ways of making your own self-employed super contributions:

    • If you pay yourself a wage, remember to also send at least 9.5% of your before-tax income to your super fund or
    • If you pay yourself out of your business revenue, we can accept a lump sum contribution when your cash flow allows for it.

    Did you know that Australian Catholic Superannuation is open to all members of the public? Enquire now to open an account today.

    Are you a low-income earner?

    If you earn less than $50,454 for the 2016/2017 financial year, you may want to make an after-tax super contribution as you could qualify for a Government co-contribution. Find out more about the bonus co-contributions you could receive and how much you need to contribute in order to receive it.

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  • Age restrictions for self-employed super contributions

    You can claim a deduction for contributions if you are self-employed and between the ages of 18 to 75.

    If you are over 75 years old, you can only claim a deduction for contributions you made up to the month after you turn 75. If you are under 18, you can only claim a deduction if you earned income as an employee or as a business operator during that income year.

    Is there a limit as to how much I can put in my super?

    Most sole traders, self-employed business people and contractors can contribute up to $30,000 per year and receive a tax benefit. If you are 50 years of age or above, you can contribute up to $35,000 per year on a before-tax basis and up to $180,000 a year after-tax, where you benefit from paying only 15% in tax on investment earnings.

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