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For supertax purposes, am i self-employed or not?

Discussion in 'Superannuation, SMSF & Personal Insurance' started by chris_qld, 12th Jun, 2008.

  1. chris_qld

    chris_qld Active Member

    Joined:
    21st Jan, 2008
    Posts:
    44
    Location:
    brisbane
    I was an employee last year, but I've been self-employed this year. For superannuation and tax purposes, am I self-employed or not during 2007/2008 finacial year?

    Any advice would be appreciated.
     
  2. MattR

    MattR Well-Known Member

    Joined:
    23rd May, 2007
    Posts:
    229
    Location:
    Sydney
    1. Why are you asking?
    2.When did you cease employment - month/year?
     
  3. Young Gun

    Young Gun Guest

    You are generally defined as ‘selfemployed’ if you don’t have an employer making super contributions on your behalf.

    You are also considered to be ‘substantially selfemployed’ if you do have an employer paying superannuation, but you receive less than 10% of your total assessable income as salary, wages or fringe benefits.

    ......................................................................................................

    You can use the 10% rule to determine if you are eligible to claim super contributions as a tax deduction:

    So for the 07/08 year if your generated more than 10% of your total assessable income as salary, wages or fringe benefits your not self-employed for super purposes and unable to claim a deduction.

    For other tax purposes i.e claiming business expenses etc you should be right.
     
  4. chris_qld

    chris_qld Active Member

    Joined:
    21st Jan, 2008
    Posts:
    44
    Location:
    brisbane
    Thanks Young Gun.

    My assessable income during the second half financial year is the same as the first half financial year when I was an employee. So due to the "10% rule", I can't claim a tax deduction for my super contribution during the second half year, i.e., I have to pay full income tax (instead of 15%) on the super I contributed during the second financial year. Is it correct? I'm confused.