Key takeaways
- If you're self-employed you'll be responsible for paying yourself superannuation.
- Self-employed super contributions work in the same way as a standard employee, except you're managing it yourself and can choose how much to contribute.
- You can join any super fund, you aren't restricted to a particular fund based on what industry you're in.
What's the best super fund for sole traders?
There are no specific funds that are dedicated to self-employed people. Instead, you're free to join any super fund that's open to the public. The best super fund for self-employed workers will have the the following features:
- Low fees. The less you pay your fund in fees, the bigger your balance will be at retirement.
- Good long-term performance. When comparing super fund performance, look for a fund that has consistently achieved high returns over the long term (that is, over the past 5,7 and 10 year periods).
- Insurance options. Depending on what industry you're in, you might have specific insurance needs. Compare the default insurance cover and the additional insurance options when choosing a fund.
Finder survey: What features are most important to Australians in a super fund?
Response | Male | Female |
---|---|---|
Strong performance returns | 79.47% | 74.57% |
Low fees | 76.63% | 78.39% |
Brand reputation | 28.66% | 23.9% |
Type of investment option | 19.11% | 12.43% |
Customer service | 18.09% | 18.93% |
Ethical and socially responsible investments | 10.57% | 16.06% |
Risk exposure | 13.01% | 9.94% |
Insurance options | 6.91% | 10.13% |
Fund size | 7.72% | 6.69% |
Super funds app | 4.27% | 5.74% |
None of the above | 1.63% | 2.87% |
Number of awards won | 0.61% | 2.49% |
Other | 0.2% | 0.57% |
Choose your own super fund
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How we picked these
The information in this table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445. In limited instances, where data is not available from SuperRatings for a product, the data is provided directly by the superannuation fund.
*Past performance data and fee data is for the period ending December 2024
If you want a bit more help choosing a fund, you can take a look at Finder's best super fund picks to get you started.
The information in this table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445. In limited instances, where data is not available from SuperRatings for a product, the data is provided directly by the superannuation fund.
*Past performance data and fee data is for the period ending December 2024
Superannuation rules when you're self-employed
If you're an employee, your employer is legally required to pay you super guarantee payments. But if you're self-employed, for example a sole trader, freelancer or contractor, you don't have an employer to pay you super. You're not legally required to pay yourself super, but it's a good idea to do so.
Employers are required to pay employees super at a rate of 11.5% on their annual earnings. If you're self-employed and choose to pay yourself super, you don't have to meet this same amount and can instead pay yourself less (or more) than this. However, the same contribution limits apply to self-employed workers.
What are the benefits of paying super for self employed?
There are tax benefits to paying yourself super.
Super is taxed at the lower rate of 15% which, depending on what you earn, could be a lot lower than the standard rate of tax you pay. Because of this, you can actually claim tax deductions when you contribute to your super as a self-employed worker.
Note: You also need to remember to lodge a 'notice of intent to claim a tax deduction' form with your super fund before the end of the financial year when you're doing your tax return. This is to ensure your super fund is aware that they need to tax your contributions within the fund.
Save for retirement.
The biggest benefit of paying yourself super is that you're saving for your retirement. Superannuation is designed to ensure Australians have enough money saved to fund their lifestyle when they're no longer earning a regular income. The more you have saved in super, the more comfortable your retirement will be.
You'll be less reliant on the Age Pension.
Superannuation was created so Australians weren't relying on the Age Pension to fund their lifestyle after they've stopped working. The Age Pension is designed as a safety net or back up, but it shouldn't be relied on as an income source and it has strict eligibility criteria. If you pay yourself super while you're self employed, you're less likely to need to apply for the Age Pension.

"As your own employer, the buck stops with you when it comes to your super contributions. When quoting or preparing invoices for your clients, make sure you've factored in an extra 12% so you can contribute comfortably to your super without shortchanging yourself elsewhere. Another good tip is to contribute to your super on the same day your invoice is paid, so you're not tempted to spend that money on other business expenses. "
What are super contribution limits for self-employed?
The same super contribution limits apply to self-employed workers that apply to all super fund members.
You can pay yourself up to $30,000 in concessional super contributions each year. Concessional contributions are the contributions you can claim as a tax deduction if you're self employed. This means the money will be taxed in the super fund at the rate of 15% instead of your income tax rate.
If you want to contribute even more to your super you're welcome to do so, however you won't be able to claim any more than the $30,000 as a tax deduction. You can contribute up to an additional $120,000 to your super each year as non-concessional contributions. This means the money will be invested with the rest of your super balance and will benefit from investment returns, but, it'll be taxed at your incomes tax rate.
How to pay yourself super when you're self employed
Paying yourself super is similar to making a standard bank-to-bank transfer online. You'll need to log into your online portal for your super fund to access your account. From here, you can select 'make a contribution' and simply enter how much you'd like to send to your super.
It's a good idea to set regular payment dates that suits you and your business. For example, a lot of Australian businesses pay their employees superannuation once a quarter (once every three months) so this could be a good idea for you too. But depending on your cash flow, you might decide to pay yourself super more or less requently instead.
Frequently asked questions
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Above you say there is no employer contribution for self-employed workers so it’s tax savings that are significant. Is this all that a self-employed worker gets?
So if the worker gets less than the tax threshold each year or thereabouts there is really no point? He is basically just paying tax. Is this it?
Hi Willem,
thanks for the question.
Unfortunately I’m not able to comment on whether or not being self-employed is effective from a tax perspective. It should be known that self-employed workers also get super-related benefits such as the ability to claim a full tax deduction for super contributions, and I’ve emailed you a page from the ATO regarding this.
I hope this helps,
Marc.
Can a self employed person join an industry super fund if so which ones
Hi John,
Thanks for your comment.
Yes, there are industry super fund options for the self-employed.
Industry Superfund is one that offers services to the self-employed. Depending on what sector you’re in, there could be Retail funds and Public sector fund.
Cheers,
Shirley