Updated on 8 January 2023
6 min read
The short answer is – it depends on how your business is set up.
If you're self-employed as a sole trader or in a partnership, it's your choice whether you'd like to make payments to your super.
If you're contracted as a sole trader from a business under a pay as you go (PAYG) scheme or you pay yourself a salary as an employee of your business, then you may be required to pay yourself super by law.
You can work out if you have to pay super or not by using this guide from the Australian Taxation Office (ATO).
Just because you don't have to make compulsory super contributions as a sole trader, doesn't mean you can't set yourself up for life after work.
You can choose to make personal super contributions to your super fund directly from your bank account as often as you'd like. And you may even be able to claim a tax deduction.
Use our Superannuation Contributions Calculator to see the difference making payments to your super fund now could have on your retirement.
Superannuation Contributions Calculator
Tip: A financial adviser can help you get more from your super if you decide to make sole trader super contributions. And if you're a member with us, you can get advice about your super account at no extra cost.1
Most people, including sole traders, can choose which super fund they'd like to join. Your superannuation is designed to grow with you for your future, so it's important to choose a super fund that helps you achieve your goals.
There are many reasons to join ART, including:
Strong long-term investment returns2
Award-winning products and services
Focused on lower fees.
Sole traders are not entitled to receive superannuation guarantee (SG) payments, but there may be some circumstances where they're required to make super contributions. For example, if you're contracted as a sole trader from a business under a pay as you go (PAYG) scheme or you pay yourself a salary as an employee of your business.
If you contribute to your super with after-tax money (also known as a voluntary contribution), you may be eligible to claim a tax deduction.
If you decide to make sole trader super contributions to yourself, you can do so by making a personal contribution from your bank account directly to your super fund. There are a few other ways you can contribute to help grow your super.
As a guide, employers contribute at least 11% of an employee's ordinary time earnings to super. So as your own boss, you may want to consider contributing a similar amount.
Keep in mind there are limits to how much you can contribute each financial year.
It depends on how you're employed as a sole trader. You can use this guide from the ATO to work out if you have to make super contributions or if it's up to you.
Use our calculator to see the difference contributing to your super now could make to your retirement savings.
Superannuation Contributions CalculatorWe can help you get the future you want by making the right choices today.
Contact usLearn about the different ways you can add money to your super as a self-employed person.
Types of super contributionsLearn about the different ways you can add money to your super, such as salary sacrificing or voluntary contributions.
Did you know the less you pay in fees on your super account, the more money you could have in retirement? Understand what you can expect to pay.
If you have more than one super account, you could be paying multiple fees. Learn how to consolidate your super today.
1. Employees in the Australian Retirement Trust group give advice to members and employers as representatives of Sunsuper Financial Services Pty Ltd (ABN 50 087 154 818 AFSL No. 227867) (SFS), that is wholly owned by the Trustee as an asset of Australia Retirement Trust. SFS is a separate legal entity responsible for the financial services it provides. Eligibility conditions apply. Refer to the Financial Services Guide (pdf) at australianretirementtrust.com.au/fsg for more information.
2. Past performance is not a reliable indicator of future performance. Ratings and awards are only one factor to be taken into account when deciding to invest. Consider the Super Savings product disclosure statements (PDSs) and target market determinations (TMDs) before deciding.