Self Employed Super Contributions

While you’re a business owner, most of the time you’re focussed on looking after the business and caring for your employees. It can be hard to find time for you and your personal finances. But, it’s valuable to begin thinking about contributing towards your super.

Is there a legal requirement to pay yourself super?

This depends on the structure of your business. For example, if you are receiving a Pay As You Go (PAYG) wage, then you should be making super guarantee payments at least once a quarter.

If you’re a sole trader or in a partnership and aren’t paying yourself a wage, you generally don’t need to pay yourself super in the form of super guarantee (SG) payments. But you can choose to make personal contributions to boost your super.

Here are 3 benefits to contributing to your super:

1. Super can be a tax-efficient way to save and can help to reduce your tax bill

Earnings within superannuation are generally taxed at 15%, which is often lower than your marginal income tax rate.

When you make personal contributions (non-concessional contributions) to your super, you could be eligible to claim a tax deduction for the contributions. This helps you save on tax and grow your super balance.

We’ve made it easy for Cruelty Free Super members to submit a personal contribution notice to claim a tax deduction. After you make a personal contribution, there’s a feature that will help you to claim the contribution on your personal income tax return.

2. You could be eligible for bonus money from the government

Depending on your circumstances, you could be eligible for bonus money from the government’s co-contribution scheme. The government has a scheme to match up to 50 cents to the dollar (capped at $500) for personal contributions. Read more about government incentives here.

3. Starting early counts

Super is part of planning for the future, and sometimes this feels like a to-do item that is easy to de-prioritise. As employees have the super guarantee (SG), their super is automatically being taken care of. While they work, the magic of compound interest is working to grow their super balances.

While it may seem daunting to contribute to your super when you’re self-employed, it’s important to know that you still have the control of when and how much you contribute. You can choose to make a one off payment, or set up recurring contributions so to regularly build up your wealth. Our Personal Contributions feature makes this really easy.

Ready to get started?

Contribute to your super now and know that your super will be cruelty-free.

Make a start today

1. Join

It takes just a few minutes to get started here.

2. Contribute

Once you’re a member, you will be able to start making personal contributions. Log in and go to“ Personal Contributions”. Our digital form will help you set up once-off or recurring contributions.

3. Claim

At tax time, you can use your super contributions to reduce your taxable income. Log in to let us know how much you’d like to claim, then complete your tax return.

Start now

How much should I contribute?

You can choose how much to contribute and how regularly you’d like to pay yourself super.

There are contributions caps for each financial year. From 1 July 2021, these are:

up to $110,000 in non-concessional contributions (from your after-tax income, and
up to $27,500 in concessional contributions (from your pre-tax income, or contributions that you’ve claimed a deduction for).

Depending on your eligibility, you may also be able to use unused contribution caps from previous years.

Find out more about personal contributions.

This is general information only and does not take account of your individual investment objectives, financial situation or needs. Before acting on it, consider if the information is appropriate and whether you need to speak to an accredited professional.

You should also consider the Product Disclosure Statement and Target Market Determination before making any decision. This product is issued by Diversa Trustees Limited (ABN 49 006 421 638; AFSL No. 235153; RSE Licence L0000635) as trustee of the Grosvenor Pirie Master Superannuation Fund - Series 2 (ABN 32 367 272 075; RSE Registration R1001204) (“GPMSFs-2”). Cruelty Free Super is a sub-plan of GPMSFs-2. The Promoter and Investment Manager of Grosvenor Pirie Master Superannuation Fund is Responsible Investment Services Pty Ltd (ABN 77 630 578 200; AFS Representative No. 001271438), which is a Corporate Authorised Representative of RevTech Media Pty Ltd (ABN 75 150 963 474; AFS Licence No. 455982). The Sub-Promoter of Cruelty Free Super is Cruelty Free Super Services Pty Ltd (ABN 17 641 761 686; AFS Representative No. 001283739), which is a Corporate Authorised Representative of Professional Superannuation Management Pty Ltd (ABN 31 617 160 791; AFSL No. 499786). The Trustee does not in any way endorse, warrant or accept responsibility for any services provided by the Promoter or Sub-Promoter in its own right or directly to members or prospective members.

Past performance is not indicative of future performance.

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