Being your own boss can be liberating. Here are some things to keep in mind to help you make the most of your future while taking advantage of the benefits of super.
A super guide for the self-employed
Own your own business? A contractor who thrives on flexibility? There are a lot of benefits to being self-employed but you shouldn’t lose focus on building for your future. Here’s why you should continue contributing to super when you’re self-employed:
- When you’re an employee, your employer makes contributions on your behalf – you usually don’t have to think about building your balance. Once you’re on your own, you are responsible for ensuring that you’ll have enough money to retire on.
- Superannuation gets preferential tax treatment – that means that you’ll generally pay less tax on earnings in super (while getting a better return) than you would in a bank account or investing it yourself. Here are some details about the contribution limits and tax implications.
- While that money is locked away until you retire, you can select investments to help it continue to grow – resting easy knowing that your super is working hard to pay for your future needs.
Claiming tax deductions for super
One of the best reasons to make super contributions is that you’ll be able to claim a tax deduction. The first step is to check with a financial planner or your tax agent about the best ways to set up your finances for the best value for your individual situation.
Other benefits of making super contributions
In some situations, there are government co-contribution schemes that can help you boost your balance by up to $500 per annum – rewarding you for building your retirement fund. If you earn less than the threshold amount, you may be eligible for co-contribution from the government as well as an offset for your contributions tax – money that will go right back into your super to help you grow your retirement fund.
Want to make sure that you’re on the right track? Ask a financial adviser about the best options for you.