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I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC


Super Facts and Tips

Own A Business? It is Time to Watch over Your Super

There are loads of things to consider when you are running your own business — from managing staff and finding customers to monitoring your paperwork and bills. And even if retirement savings may be the very last thing that pops into your mind, do not leave it too late.

According to the ASFA (Association of Superannuation Funds of Australia), Australians that are self-employed have smaller superannuation balances than regular workers. Almost 50% of small-scale business owners claim to have low superannuation savings, and 1 in 4 do not have super at all.

What this signifies is that almost three-fourths of self-employed Australians could be financially unready for retirement — and already missing out on benefits now. However if you are worried that you are one of these folks, there is great news: watching over your superannuation now can help you monitor and take care of your financial future. Here is how to do it.

Begin making contributions regularly

You may count on making a huge contribution to superannuation later, for instance when you put your business on sale. Firstly, what you can do for your superannuation is to begin making regular contributions at this instant. It is never late to begin, and it could add up quickly — so you will have more to withdraw from later.

The retirement standard of ASFA approximates that a couple wanting a relaxed retirement will require $510,000 of joint superannuation balance. To put this into perspective, a worker earning $50,000 annually will likely wind up with less than 50% this amount once they leave the workforce.

It is simple math: if a super stays longer in a fund, then it can earn more returns. And since the money earned on your superannuation is taxed at 15%, you could pay less on the earnings you make than you would for the investments outside the superannuation system — which helps you build your superannuation balance faster.

Maximize tax deductions

If you are self-employed, then you can get a tax deduction for the cash you contribute into your super, up to the yearly concessional contributions cap. Meaning, for the 2014–2015 financial year, you can get up to $30,000 or even $35,000 once you turn 50 years at any time throughout the 2014-2015 financial year.

Just bear in mind, if you decide to get the tax deduction on the contributions you made, you will have to notify your super fund’s trustee in writing. You need to carry this out before putting in the tax return you get for the year.

You could save on tax as soon as you sell up

When the moment comes to put your business on sale, you will want to get the full benefit from it. This is the time you can make use of your profits in turning your superannuation savings into a strong super. The retirement exemption on small business provides a capital gains tax exemption up to $500,000 for individuals over 55. If you are under 55 years old, then you could take advantage of this exemption through investing the amount of the capital gains from selling the business straight into your superannuation (limit of $500,000).

More information on super management can be found on www.australiansuperfinder.com.au

All information on this website is of a general nature only. We have not taken into account your financial situation, needs or objectives. You need to make up your own mind and ascertain yourself if it is right for you. We recommend you read the product disclosure statement(s) and the financial services guide before making any financial decision.

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