Self-employed

Your Super

As a self-employed person, you are not required to contribute to superannuation. However, super can be a very tax-effective way to save for your retirement.

Most self-employed people are able to claim a personal tax deduction for the full amount of contirbutions made to super up to age 75.  Some may also be entitled to be Government co-contribution if their total income is below $61,920 (2009/10), they make personal super contributions (i.e. contributions for which no deduction is claimed) and meet other eligibility criteria.

Tax and accounting

It’s a good idea to talk to a qualified accountant or tax specialist if you’re self-employed or running a small business. The tax rules can change frequently and it can be difficult to keep up and understand changing requirements and new benefits that you need to be aware of for both your business and personal situation.

Your insurance

One of the risks of being self-employed is that your income and livelihood could suffer significantly if you are unable to work due to illness or injury. There are a range of insurance options available including life, income protection, and total and permanent disablement cover, which can provide some protection against this risk.

Insurance for your business

Business insurance protects your business from certain risks, and is tailored to a range of different industries. Some risks you might consider safeguarding against include those relating to:

• Key person dependency
• Business overheads
• Premises, property, vehicles, assets and stock (including in transit)
• Business interruption
• Personal accident or illness
• Fraud & dishonesty

Talk to a financial adviser to determine the best insurance coverage for your business.