Self-employed contributions
If you earn at least 90% of your taxable income from self-employment, you could contribute to an LGsuper Retained Benefit or Spouse account and claim a tax deduction.
If your business is set up as a company, you are in effect employed by that company. This means you are not considered self-employed and cannot claim a tax deduction for super contributions. Your company can contribute to your LGsuper account on your behalf. Read more...
How much you can claim
For 2008/09 you can claim 100% of your personal contributions up to the following limits:
- Under 50 years old at 30 June, $50,000 p.a.
- Age 50 or over at 30 June, $100,000 p.a. (higher transitional limit)
If you claim a tax deduction for contributions above these limits they will be taxed at the top marginal rate (currently 46.5%) instead of the 15% contributions tax. They will also count towards your after-tax contributions limit.
Other things you should know
Before making a contribution, you should be aware:
- Your contributions are generally preserved until retirement after reaching your preservation age. Read more…
- Any amounts you claim a tax deduction for will be taxed at 15% by the Australian Government on entry to LGsuper.
- These amounts may also be taxed on withdrawal. Read more…
- Self-employed people may be eligible for the co-contribution for personal contributions if a tax deduction is not claimed.
