The Super Problem for Self-Employed Tradies

Employees get super paid on top of their wages. But if you're a sole trader or contractor, you're responsible for your own superannuation. And most tradies aren't putting enough away.

How Much Should You Be Contributing?

The government's Superannuation Guarantee rate (currently 11.5% for 2024–25, rising to 12% from 1 July 2025) gives you a benchmark. As a self-employed tradie, aim to put at least 10–12% of your pre-tax income into super.

The Tax Benefits Are Significant

Concessional (before-tax) contributions to super are taxed at just 15% inside the fund — compared to your marginal tax rate outside it. If you're earning over $45,000, you're in a 32.5% tax bracket. Every dollar of concessional super contribution saves you 17.5 cents in tax.

How to Contribute as a Sole Trader

  1. Choose a super fund (industry funds like AustralianSuper or Hostplus are popular)
  2. Make contributions regularly — monthly or quarterly works well
  3. Lodge a "Notice of Intent to Claim a Deduction" form to make contributions concessional
  4. Claim the deduction on your tax return

Contribution Caps — Don't Go Over

There's a limit on how much you can contribute concessionally each year (currently $30,000 for 2024–25). Exceeding this cap means paying extra tax. Check the ATO website for current limits.

Catch-Up Contributions

If you had a super balance below $500,000 and didn't use your full concessional cap in previous years, you may be able to carry forward unused amounts and make larger contributions in good income years. Useful for tradies with variable income.

Start Now, No Matter How Old

The best time to start contributing seriously to super was 10 years ago. The second best time is today. Even 5 years of solid contributions can make a significant difference to your retirement.