How to manage your super when you're self-employed
Self-employed? Here are six steps to boost your own retirement savings
1. Select a super fund from the time when you were employed so that you can use it for your self-employed contributions.
2. Next you must make a contribution to your super fund within the limit of $25,000pa.
3. You must make all your contributions for the year by June 30 if you wish to claim a deduction.
4. Fill out a notice of intent form from your super fund. There is also one available online from the ATO website. This form lets the tax office know you intend to claim a tax deduction for your personal contributions.
5. Your fund must acknowledge its receipt of the notice before you lodge your tax return for the relevant year. Then you can claim a deduction in your tax return for the contributions you made. Keep the correspondence from the super fund as proof for the tax office.
6. If you change your mind about how much you want to claim as a deduction, you can vary the amount, provided you are still within the time limits specified for lodgement of the notice of intent. You must lodge a second notice specifying the higher or lower amount you wish to claim.
Most self-employed people can claim a full deduction for contributions they make to their super until the age of 75.
You may also be eligible for the federal government's super co-contribution payment. This helps low- to middle-income earners save for their retirement. If you're eligible and you make personal super contributions, the government will put in up to a maximum of $500 depending on your annual income.