If you’re a sole trader or a partner in a partnership, you don’t have to make super contributions to a super fund for yourself. However, you may want to consider super as a way of saving for your retirement.


Most self-employed people can claim a full deduction for contributions they make to their super until age 75. Keep in mind that contributions you make may be subject to extra tax if they exceed the contributions limit for that year.

Your personal deductible contributions include any personal contributions you made to a super fund for which you can claim an income tax deduction on your individual tax return.

You can claim an income tax deduction for personal contributions you make to a super fund if you meet certain eligibility criteria.

If you made a personal contribution and you did not claim a deduction for it, that amount is not a reportable superannuation contribution.

You may also be eligible for the super co-contribution payment. The super co-contribution helps eligible low- to middle-income earners save for their retirement. If you’re eligible and you make personal super contributions, the government will match your contribution with a co-contribution up to certain limits.

Make sure your super fund has your TFN, otherwise:

•  your super contributions will be taxed an additional 31.5%
•  your fund won’t be able to accept personal contributions from you, which means you may miss out on any super co-contribution you’re eligible for
•  it will be harder to keep track of your super.

The superannuation (super) co-contribution is a government initiative to help eligible individuals boost their super savings for the future.

If you are a low or middle-income earner, you can take advantage of the super co-contribution payment by making eligible personal super contributions to your super fund or retirement savings account (RSA). The government will then match up to $1,000 of your personal super contributions.

You don’t need to apply. If you’re eligible, all you need to do is make personal super contributions to your super fund or retirement savings account and lodge an income tax return.

The maximum super co-contribution payable, and the way we work out this amount depends on the income year in which you made your eligible personal super contributions and whether your total income falls between the super co-contribution income thresholds for that year.

Super co-contribution and tax

The super co-contribution:

•  is not subject to tax when it is paid to your super fund or RSA
•  is not included as income in your tax return
•  is preserved in a super fund or RSA and can only be accessed when other preserved amounts can be accessed.

Earnings on the super co-contribution will be taxed like any other earnings of the super fund or the RSA provider.

Should you have any questions regarding your superannuation contribution as a sole trader or partnership or if you have any other accounting or financial planning queries or needs please contact our team of experienced Financial Planners and Accountants at The Quinn Group on 1300 QUINNS to book an appointment or submit an online enquiry.