Super for self-employed people and sole traders

How does super work for self-employed people?

While most employees receive mandatory super contributions from their employer(s), it doesn’t work that way for self-employed workers. Saving for retirement is largely a self-employed person’s own responsibility. 

If you’re self-employed, you generally don’t have to pay the super guarantee for yourself - but you can if you want to. You also have the freedom to choose how much (up to an annual cap), how often, and when to contribute to your super.

Note that most self-employed people can’t salary sacrifice – or make super contributions from their pre-tax salary – as they aren’t an employee. 

Do self-employed people have to pay super?

It depends on what kind of self-employed person you are.

If you’re a sole trader or in a partnership you have the option to pay your own super. You can pay your voluntary contributions as a regular direct debit from your personal bank account or as you like in lump sums. You can also decide whether you want to claim a tax deduction on super payments or not. It’s important to talk to your financial adviser or super fund first, as both options have their pros and cons.

If you’re a contractor, your company agreement or working arrangements with the company will play a role in your super. For example, you might pay your own contributions but could possibly be eligible for super guarantee contributions from the company. Find out more about how contractors can be considered employees for super purposes and see where you fit in on the ATO website. It could also be a good idea to check your contract or speak with your company contact.

Case Study: Libby’s story

Libby’s a freelance graphic designer. She creates logos for all sorts of design and advertising firms. She has a contract with Superstar Design to work 10 hours per week, at an agreed hourly rate, and she must do the work herself. She has an ABN and sends Superstar a monthly invoice for her hours.

Even though she’s a freelancer, Abby has agreed in her contract with Superstar that she is considered an employee because:

• her contract is for the labour and skills she provides
• she is paid for the number of hours she works
• she does the work herself.

This means that Superstar needs to pay SGCs for Libby in addition to her pay. 

If you’ve registered your business as a company for tax purposes (i.e. you pay yourself a wage or employ people), your company may be obliged to pay the employer superannuation guarantee contributions on your behalf. To see if you’re considered an employee for super guarantee purposes. Check out the ATO website for more information.

How much super should I pay myself?

If you do decide to make voluntary super contributions, you can pay as little or as much as you like, up to an annual cap (see below). The right approach will be different for everyone, depending on what you can afford and your retirement goals, so it’s a good idea to seek financial advice.

As a guide, employers contribute 12% of an employee's qualifying earnings, which is the Super Guarantee.

How do I make a super contribution for myself?

It’s easy to contribute. Set up a regular payment or make a one-off contribution using BPAY® via your bank account. If you’re a Rest member, your Rest biller code and reference number are on your account – log in to MemberAccess or use your Rest App. 

Deductions and caps on super contributions

If you choose to make a personal contribution from your after-tax income, you may be able to claim a tax deduction for it.

If you want to claim a tax deduction, submit a ‘Notice of intent to claim or vary a tax deduction’ form before you lodge your tax return for that year. Wait for your fund to confirm before claiming your deduction with the ATO at tax time.  It’s also important this decision is based on sound financial advice.

The government has annual caps in place on how much you can contribute every year. At a glance:

• the current concessional (before-tax) contribution cap is $32,500
• the current non-concessional (after-tax) contribution cap is $130,000.

Some things to keep in mind

• If you exceed a contribution cap, you could be liable to pay extra tax. However, you may have the option to carry forward unused concessional contributions or bring forward future non-concessional contribution caps if you are eligible.
  
  
• If you claim a deduction on your after-tax contributions, it will count towards your concessional contributions cap.
  
  
• To be eligible to make after-tax contributions, your total super balance must be less than the general transfer balance cap on 30 June of the previous financial year. This is $2.1 million for the  2026-27 financial year and was $2 million for the 2025-26 financial year.
  
  
• If you are aged 67-74 years, you will be required to meet the work test in order to claim a personal superannuation contribution deduction.

These figures could change, so speak with a financial adviser or keep your eye on the news and ATO website.