Give yourself a super start to retirement
Local Business Matters David Eaton – WA Small Business Commissioner
MANY small business owners put their own superannuation at the bottom of their priority list, but it is a vital part of running your own business.
By taking action now, you can ensure you have a strong financial foundation for your retirement years.
Superannuation is one of the best routes to saving for retirement and if you’re self-employed or work as a contractor, paying yourself super falls into your list of responsibilities.
A standard contribution of 9.5 per cent of before-tax income will enable you to plan for life after work.
Many small business owners prioritise other financial responsibilities over paying themselves super.
If you have been an irregular payer and have a low-balance account, since July 1, 2019, new laws known as the Protecting Your Superannuation Package require superannuation providers to report and transfer these accounts to the Australian Taxation Office.
On the other side of the coin, employers have also been put on notice by the ATO that payments of employee superannuation contributions are on their radar.
The ATO will have increased visibility over super payments from this year, with Single Touch Payroll requiring the vast majority of Australian businesses to lodge payment and superannuation information for employees in real time.
The ATO website has information about superannuation at ato.gov.au/ super.
The SBDC website also provides information about superannuation, payroll and other tax and finance matters.