Super to be Paid for the Self Employed?

Super to be paid for the Self Employed?
Super to be paid for the Self Employed?

Do the sole traders and self employed, that do not have a company where super is compulsory even when directors pay themselves, have an obligation to pay super?

The ATO website guidance is “If you’re self-employed, you don’t have to make super contributions to a super fund for yourself. However, you may wish to consider super as a way of saving for your retirement.”  SEE HERE

It would be wise to be putting super away just as if you were employed, otherwise if you hope that selling your business will be your super, you take several risks – all your “eggs” are in one basket, your industry may not be viable when you want to sell, you may not be able to build the business to the value you want to sell for.

You will also miss out on the very generous tax concessions of super, such as tax free pension after 60 YO (or reaching preservation age), see details in this article HERE.

When is super due, the ATO states –

“You need to pay a minimum of 9% of each employee’s earnings base at least once every quarter, by the cut-off date (28 October, 28 January, 28 April and 28 July).

You can choose to pay more often if it suits you, for example – on a monthly basis.”

For more obligations, go to the ATO site HERE.

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