If you're self-employed — whether as a sole trader, contractor, freelancer, or business owner — nobody is legally required to pay superannuation for you. Unlike employees who receive the 12% Super Guarantee (SG) from their employer, self-employed Australians must take charge of their own retirement savings. And many don't.
Are you required to pay yourself super?
No. There is no legal obligation for self-employed people to contribute to super. However, voluntarily contributing gives you significant tax advantages and helps build your retirement savings. The real question isn't whether you must — it's whether you should. In almost every case, the answer is yes.
Tax deductions for personal contributions
As a self-employed person, you can claim a tax deduction for personal super contributions up to the concessional contributions cap of $30,000 per year (2025–26). These contributions are taxed at 15% inside super, rather than your marginal tax rate (which could be 32.5%, 37%, or 45%). The tax saving is substantial:
| Taxable income | Marginal rate | Tax saved per $10,000 contributed |
|---|---|---|
| $45,001–$135,000 | 30% | $1,500 |
| $135,001–$190,000 | 37% | $2,200 |
| $190,001+ | 45% | $3,000 |
To claim the deduction, you must lodge a Notice of Intent to Claim a Deduction (s290-170) with your fund before lodging your tax return or rolling over the money. Your fund will acknowledge it and the contribution will be taxed at 15% inside super.
How much should you contribute?
A useful benchmark: contribute at least 12% of your net business income (matching the SG rate that employees receive). If you can afford more, the $30,000 concessional cap plus $120,000 non-concessional cap gives significant scope to build your balance quickly — especially if you have unused cap carry-forward from previous years.
Choosing a fund as a self-employed person
You have complete freedom to choose any fund. Consider:
- Low fees: Since there's no employer subsidy, every dollar in fees counts. Compare at your expected balance using our comparison calculator.
- Insurance: Self-employed people don't have employer-funded insurance. Getting death and TPD cover inside super is often cheaper than retail insurance — check what your fund offers.
- Flexibility: Some funds like AustralianSuper and Australian Retirement Trust accept irregular contribution patterns that suit variable self-employed income.
Structuring contributions from a company or trust
If you operate through a company or trust, you can have the entity pay SG contributions for you as a director/employee. These count toward the concessional cap and are a tax-deductible expense for the entity. Talk to your accountant about the most tax-efficient structure.
Related guides
- Super contribution caps 2025–26
- How super is taxed
- Advanced contribution strategies
- Salary sacrifice into super