Super obligations for employees, sole trader contributions and SMSF considerations for trade business owners.
As an employer, you must pay the Superannuation Guarantee (SG) for all eligible employees. The SG rate is 11.5% of ordinary time earnings in 2025–26, rising to 12% from 1 July 2025. Super must be paid quarterly to a compliant fund by the quarterly due dates. Late or underpaid super attracts the Superannuation Guarantee Charge (SGC), which is more expensive than the original obligation.
Sole traders are not required to pay themselves super — but failing to make personal contributions means retiring without a significant asset. The maximum deductible personal contribution in 2025 is $30,000 (concessional cap). Contributions to super as a sole trader are tax-deductible, making it one of the most effective wealth-building tools available to trade business owners.
Many workshop owners treat super contributions as optional or deferred when cash flow is tight. This is understandable in the short term but problematic over a career. The compounding effect of delayed contributions is significant — $5,000 invested at 40 grows to roughly $22,000 by 65 at 7% annual return. The same amount invested at 50 becomes $10,000.
Self-Managed Super Funds (SMSFs) offer flexibility for business owners — including the ability to hold business real property (your workshop premises) within the fund. This is a legitimate and tax-effective strategy for workshop owners who own or plan to purchase their premises. It requires an SMSF specialist to structure correctly. Not suitable for all situations — get advice specific to your position.
Free tools pre-set for Australian conditions — AUD, GST and AU labour rate defaults.
Open free tools →