Self-employed resellers aren't required to pay themselves super — but they probably should. Here's why.
If you're a sole trader reseller, there's no legal requirement to pay yourself superannuation. Unlike employees who receive compulsory super from their employer (currently 11.5%), self-employed people must make voluntary contributions if they want to build their super balance. Many sole traders neglect super entirely, which creates a significant retirement funding gap over time.
Voluntary super contributions offer a powerful tax advantage. Concessional (before-tax) contributions to super are taxed at just 15% — significantly less than most marginal tax rates. If you're in the 32.5% tax bracket, contributing $10,000 to super saves you $1,750 in tax compared to taking that money as income. Over a decade of reselling, these savings compound dramatically.
As a sole trader, you contribute to your super fund directly (via BPAY or transfer). You then claim the contribution as a tax deduction by completing a "notice of intent to claim" form and submitting it to your super fund before you lodge your tax return. The fund must acknowledge receipt before you can claim the deduction.
Resellers who don't contribute to super for years can find themselves approaching retirement with inadequate savings. Even small regular contributions ($200-500/month) add up significantly over time with compound growth. See our sole trader guide and tax return guide for related information.
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