Super for the self-employed
TWUSUPER acts in your best interests
Whether you’re a contractor or sole trader with an ABN, or the owner of an incorporated (Pty Ltd) small business, your superannuation for retirement is just as important for you as it is for employees. That’s why TWUSUPER makes sense.
We act in your best interests as a profit-for member fund with competitive fees. We have a three-decade strong history of solid returns and give you a choice of investment options to suit your needs and preferences.
Super for small business and sole traders
Whatever business structure you have, TWUSUPER can handle it. If your business is a Pty Ltd company, then technically you are an employee of the business (even though you are also an owner). This means that, under Australia’s superannuation laws, your company is required to pay you the super guarantee (SG) of at least 9.5% of your salary.
Super for sole traders with just an ABN is different – it’s up to the sole trader when, how much and even if superannuation is put aside each year. So what are the benefits of paying yourself super if you are a sole trader?
Benefits of super for sole traders
Like anyone, as a sole trader you want to retire one day, but without adequate super, a comfortable retirement might not be easy. And without compulsory super, it is even more important for sole traders to take responsibility for their super, while they’re still earning. The more you contribute to your super while you’re earning, the more you’ll have in retirement, when you’re not.
What’s more, income you invest through super contributions is generally taxed at a lower rate than if you put it in your bank account. There is a contributions cap of $25,000 per year before the marginal income tax rate kicks in on further contributions (this could be more where you can use the ‘carry forward’ rule – see our Product Disclosure Statement).
