Self employed? Here’s how to pay yourself super

One of the most common questions we receive from people when they start their own biz is what about superannuation and should I still contribute? The answer is an emphatic YES!

So we’re going to break down how you can go about doing that depending on which type of biz you have, but first, why is it important to contribute to superannuation?

There are a few different reasons:

• The biggie is that it’s how you save for your retirement. According to the ASFA Retirement Standard (February 2026), a comfortable retirement for homeowners needs a super balance of about $630,000 for a single person and $730,000 for a couple. To get there, you need to factor regular contributions into your biz cash flow, as contribution caps may stop you depositing large sums down the track. And trust us when we tell you not to rely on the government pension for this one if you don’t have to.

• Another reason to contribute to super is that you can claim a tax deduction for it, up to $32,500 each year (from 1 July 2026), which reduces the tax you pay that financial year. Had a lean year or two? The carry forward rules may let you scoop up unused cap amounts from the previous five years and make a bigger contribution, as long as your total super balance was under $500,000 on 30 June of the previous financial year. It’s a win win all round! Want to deep dive? The taxman-ian devil (AKA ATO) explains carry forward rules here.

So with all that in mind, how do we go about paying super? Here are the nuts and bolts ...

Sole Traders

Superannuation contributions are not compulsory (yet!) for sole traders, but they are highly recommended. As an employee you would get 12% of your wage as super (from 1 July 2025), so it’s good practice to contribute 12% of your earnings to your super fund, up to the concessional contributions cap of $32,500 (from 1 July 2026).

To ease cash flow, this can be done at regular intervals, such as monthly or quarterly, or as a lump sum just before 30 June. To make the contribution, contact your super fund for their payment details. Let them know it’s a personal concessional contribution so they treat it correctly, and lodge a notice of intent to claim a deduction with your fund, and receive their acknowledgement, before you lodge your tax return. The admin is fairly easy, the hard part is managing the cash flow. That’s why we recommend regular payments rather than an annual lump sum. As a sole trader, you claim the tax deduction in your individual tax return.

Family Trusts

For those small biz that operate through a family trust and aren’t employees, the concept is very similar to a sole trader. Work out roughly what your wage would be if you worked in the business, then put 12% of that into super each year. Again, cash flow matters, so regular payments are recommended. Because you’re not an employee, the contribution is a personal one. You can pay it from the biz bank account, but record it as drawings or a distribution, not a biz expense, and claim the deduction in your personal tax return (after lodging that notice of intent with your fund). Have a chat with your accountant about what suits your circumstances.

Companies

If you’re a director who is paid director fees or a wage, you’re an employee for super purposes, so the company must pay super guarantee of 12% on top. From 1 July 2026, under Payday Super, it must reach your fund within 7 business days of each payday. The company claims the tax deduction, not you. Any extra contributions the company makes on top of super guarantee, like salary sacrifice, are reported through STP as Reportable Employer Superannuation Contributions (RESC). They’re not taxable income, but they’re included in your tax return for some income tests. If you’re a director who isn’t paid anything, the rules are trickier, so chat to your accountant before the company makes contributions on your behalf.

NOT SO SECRET WOMEN'S BUSINESS

Just a little bit more info if we may, to highlight that if you are a woman you need to take note of these stats (yes they are alarming) and actually DO SOMETHING about it (hint hint: contribute to super)

• Across all ages, women’s median super balance is 20% lower than men’s, according to an analysis of the latest ATO data (Super Members Council, June 2026). The gap grows the closer women get to retirement. By 60 to 64 it hits 26%, and it has widened over the past seven years. The good news is the gap is narrowing for younger women, so if you start now, time is on your side. Yes, there’s still that pesky gender pay gap too, with women earning on average 11.5% less than men (ABS, November 2025), which means less super is paid on their behalf.

• Women also tend to leave the workforce to raise families, and a common way to re-enter it with flexibility is to start a small biz. Women now make up around a third of Australia’s small biz owners, and their numbers are growing more than three times faster than men’s. But with no employer paying super, it’s easy to forget to pay yourself. In fact, nearly half of small biz owners don’t regularly contribute to super at all (AMP, 2025), and for women already starting behind, that only widens the gap.

So get onto it ladies!

WRAP UP

Superannuation can be a complicated matter and requires professional guidance. We recommend that you consult with your accountant (hint hint US 😉) and a qualified financial advisor before making any decisions.

Our motto at All In is if you have taken the time to read this, please make sure you DO SOMETHING with the information. If it is booking an appointment with us (here is the link😉) or your advisor then that is a great first step!

Here’s to a happy retirement!

Disclaimer: This blog is for general information only and isn’t personal tax or financial advice. For advice on your specific situation, please contact a tax professional, that’s us! 😊