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Western Suburbs Weekly - - Money Talks -

EING your own boss has plenty of ad­van­tages but com­pul­sory su­per is of­ten not one of them. When you work for an em­ployer, they are obliged to con­trib­ute the cur­rent min­i­mum of 9.5 per cent of your salary into su­per in what is known as a su­per guar­an­tee pay­ment.

The same sit­u­a­tion doesn't ap­ply to the self-em­ployed, who have to choose to con­trib­ute to their own su­per, which means some sim­ply don't get around to do­ing it.

The long term su­per ben­e­fit of pro­vid­ing a re­tire­ment in­come can be very im­por­tant if you are run­ning a small busi­ness.

Su­per­an­nu­a­tion funds of­ten pro­vide cost­ef­fec­tive in­sur­ance cover for death and dis­abil­ity. So the first tip is to set up a su­per ac­count with low costs and a sound in­vest­ment record and se­condly, con­sider con­tribut­ing to it as if it was com­pul­sory.

There are some other im­por­tant tax ben­e­fits for the self-em­ployed, the pri­mary one be­ing that you can claim a full tax de­duc­tion for your su­per con­tri­bu­tions.

Another very valu­able con­ces­sion for the self-em­ployed is the abil­ity to be ex­empt from cap­i­tal gains tax of up to $500,000 if you sell a small busi­ness as­set.

If you are un­der 55, you must roll over the pro­ceeds into a su­per fund in or­der to claim the ex­emp­tion. Those aged 55 or over can choose to roll over the pro­ceeds to a su­per fund.

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