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Super Contributions

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Compleks, 13th Jun, 2008.

  1. Compleks

    Compleks Well-Known Member

    Joined:
    18th May, 2007
    Posts:
    348
    Location:
    Melbourne
    I just set up a super fund, and when it comes to setting up regular contributions I came across this:

    Because I hold an ABN, and am self employed. Can my business make contributions for me?
    Is there any benefits here, or something I should know?
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
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    Location:
    Sydney, NSW
    Hi Compleks,

    The business can make a contribution and claim it as an expense for tax purposes. The contribution is taxed at 15% versus the company tax rate of 30%. There is a benefit of 15%, though the money is locked in superannuation until you meet a condition of release which depending on your age could be a while.

    Cheers,

    Dan

    PS Before making an investment decision speak to an FPA registered Financial Planner.
     
  3. crc_error

    crc_error The Rule of 72

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    your business is required to pay you 9% super.
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Not necessarily - he doesn't have to take the money as salary ... the business could pay him dividends instead.
     
  5. Rob G.

    Rob G. Well-Known Member

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    You cannot employ yourself !!!

    Therefore sole traders and partners make tax deductible contributions IN THEIR OWN NAMES (provided less than 10% of gross assessable income in a year is from employment).

    So if you don't have a company/trust that employs you then don't claim it as a business deduction, but in your personal return.

    Cheers,

    Rob
     
  6. crc_error

    crc_error The Rule of 72

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    either way, people who are self employed and don't pay their super, they are silly.

    I know someone who used to earn big dollars, thought he was smart by not needing to spend 9% on super, and today he has nothing in his super, and a failed business...