The topic of last week's article, additional superannuation contributions, is of particular importance to self-employed people.
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Obviously, they don't have an employer paying compulsory contributions on their behalf.
The only contributions being made are the ones they put in personally.
There are nearly always going to be other priorities - the mortgage, the costs of raising children, the credit cards. Yet, despite these, employees have regular super contributions made for them.
Self-employed people must do the same. If not, there is a real risk they could become the retired poor.
There are thousands of self-employed tradespeople, shop owners, rural contractors and consultants.
If they haven't been contributing, this is the time of year to plan to put in a worthwhile amount before June 30.
Doing so will ensure they aren't left behind in the retirement security stakes by their employee friends.
An employee earning $60,000 per annum receives $5700 of contributions annually.
Someone on $80,000 per annum receives $7600 into their super.
So, the self-employed person should contribute perhaps $500 to $600 per month from their business bank account into their super.
If they haven't been doing that, a lump sum contribution of say $6000 should be planned now.
There are tax benefits on the way into super, on the ongoing earnings, and in retirement.
Contributions by self-employed people up to $25,000 per annum are tax-deductible, $50,000 for a couple. This could mean a very handy tax refund.
The ongoing earnings within a super fund are taxed at 15 per cent on income and 10 per cent on realised capital gains.
These rates are much less than most personal tax brackets.
Most working people pay 34.5 or 39 per cent income tax plus Medicare levy.
In retirement, super accounts can be converted into pension accounts, paying a regular income.
Once this happens, investment earnings are totally tax-free.
There is no tax on the fund earnings or on the regular payments to the retiree.
Some self-employed people and small business owners initially qualified for JobKeeper payments last year but then saw a strong recovery, so they now have cash in the bank.
JobKeeper payments are taxable income, so a deduction for a super contribution will help reduce the pending tax bill.
Small business owners who operate a company structure can also benefit.
Their company can make up to $25,000 of contributions for them, including the 9.5 per cent super guarantee amounts.
In some cases, it may be wise to borrow to make super contributions.
People later in their working careers who have modest super balances could consider taking a loan at the current extremely low interest rates.