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Grow your super while self employed – an introduction 

For self-employed Australians, managing super can often fall to the bottom of the priority list. But that doesn’t mean super isn’t important.  

If you don’t make regular super contributions while you’re working, you could find yourself without enough savings for retirement. This can impact your quality of life in later years.

And it's especially important for sole traders and freelancers, as these people don't have an employer making regular super contributions on their behalf.

Understanding your options and making informed decisions about your retirement savings is crucial for long-term financial security. Here’s how to get started, and some things you should check if you’re self-employed. 

Is super compulsory for sole traders?

Sole traders are not required by law to pay themselves super unless they earn income through wages from their own company. However, just because it’s not mandatory doesn’t mean it’s not beneficial.  

Super is one of the most tax-effective ways to save for retirement. Contributions made to super are taxed at a concessional rate of 15%, which is generally lower than most people’s marginal tax rate – which can be as high as 45%. This means that even modest, regular contributions can grow significantly over time thanks to compound interest and tax savings.

Are super contributions tax deductible for sole traders? 

If you make personal after-tax contributions to your super, you’ll have the option to claim a tax deduction.

Claiming after-tax contributions as a tax deduction reduces your taxable income whilst increasing your savings for retirement.

We always recommend you get professional advice before making a decision on how much to contribute or claim.

Tax deductible super contributions

Super for the self-employed

If you’re self-employed you have several options when it comes to super. Here are some common things to consider.  

1. Choose a super fund

Most self-employed Australians opt to join a retail or industry super fund. These funds are open to the public and offer a range of investment options, insurance cover, and online tools to help manage your account. You can make voluntary contributions via BPAY or direct debit, and many funds allow you to set up recurring payments to make saving easier. 

When choosing a fund, consider factors like fees, investment performance, insurance options, and customer service. You can learn more about Equip Super and how we compare to other funds.

2. Alternatively - set up a self-managed super fund (SMSF) 

For those who want full control over their retirement savings, a Self-Managed Super Fund (SMSF) might be appealing. SMSFs allow you to choose your own investments, including property, shares, and even collectibles. However, they come with significant responsibilities, including compliance with super laws, record-keeping, and annual audits.

SMSFs are generally better suited to individuals with larger super balances (typically over $250,000) due to the costs involved in administration and compliance. If you're considering this route, it's wise to consult a financial adviser or accountant.

3. Make regular voluntary contributions

Whether you choose a super fund or an SMSF, consistency is key. Setting up automatic monthly contributions can help build your super balance over time. You can generally contribute up to $30,000 per year in concessional (pre-tax) contributions - also known as salary sacrifice - and up to $120,000 in non-concessional (after-tax) contributions, depending on your circumstances. 

4. Claim tax deductions

One of the perks of being self-employed is the ability to claim a tax deduction for personal super contributions. To do this, you’ll need to notify your super fund of your intent to claim and ensure the contribution is received before the end of the financial year. This can help reduce your taxable income while boosting your retirement savings.

Super, sole traders, and retirement

Super for self-employed Australians doesn’t have to be complicated. Whether you're a sole trader, freelancer, or running your own business, taking control of your super today can make a big difference tomorrow. By choosing the right fund, making regular contributions, and leveraging tax benefits, you can build a solid foundation for your retirement.

Issued by Togethr Trustees Pty Ltd ABN 64 006 964 049, AFSL 246383 ("Togethr"), the Trustee of Equipsuper ABN 33 813 823 017 ("Equip Super"). The information contained is general advice and information only and does not take into account your personal financial situation or needs. You should consider whether this information is appropriate to your personal circumstances before acting on it and, if necessary, you should seek professional financial advice. Where tax information is included, you should consider obtaining taxation advice. Before making a decision to invest in Equip Super, you should read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product which are available at equipsuper.com.au. Financial advice may be provided to members by Togethr Financial Planning Pty Ltd (ABN 84 124 491 078 AFSL 455010) – a related entity of Togethr. Past performance is not a reliable indicator of future performance.

© 2023—2025 Togethr Trustees Pty Ltd ABN 64 006 964 049 AFSL 246383 — *Past performance is not an indication of future performance.
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