Self-employed

There’s now more incentive to boost your super with improved tax breaks for the self-employed.

Tax Deductions

If you’re self-employed or don’t have an employer contributing to your super, you could be eligible for a tax deduction on contributions you personally make to your super.

Eligibility

To be eligible you need to be in one of the following categories:

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  • you’re self-employed or substantially self-employed (your assessable income, exempt income, and reportable fringe benefits from eligible employment is less than 10% of your total assessable income), or
  • you do not receive (and are not entitled to) superannuation support from your employer (unsupported persons).

You also need to have made a personal contribution for this financial year.

I own a company. Am I eligible?

If you own a company, super contributions made by the company are treated as employer contributions, so will usually be eligible as tax deductions for the company. Check with your accountant or the ATO if you have further questions.

How do I claim the tax deduction?

If you intend to claim a tax deduction for self employed contributions, you’ll need to notify us in writing by completing this ATO form and returning it to us.

How much can I contribute?

Any contributions over the current cap of $30,000 per year will be taxed at a marginal tax rate plus an excess concessional contributions charge. If you’re 50 or over, you get to contribute up to $35,000 before attracting this higher tax rate.

Contributions that you claim a deduction on will be subject to 15% Contributions Tax within the fund. Rollover payments are not deductible. If you’re not sure about your tax circumstances, contact the Australian Taxation Office (ATO).

Can the self-employed claim the Government Co-contribution?

Yes, the good news is it’s been extended to include the self-employed providing certain criteria are met:

  • You earn at least 10% of your income from carrying on a business, eligible employment or a combination of both
  • Your income is lower than the relevant higher threshold of $51,021 for 2016–17
  • You are less than 71 years of age at the end of the income year.