Superannuation for Australian Joinery Workshop Owners

Employee super obligations

As an employer, you must pay the Superannuation Guarantee (SG) for all eligible employees. The SG rate is 12% of ordinary time earnings from 1 July 2025 (2025–26 onwards). This is the legislated final rate — further increases are not currently scheduled. From 1 July 2026, Payday Super applies. Employers must calculate SG at 12% of qualifying ordinary time earnings and pay it such that contributions generally reach the employee's super fund within seven business days of payday. Late or underpaid contributions attract the Superannuation Guarantee Charge (SGC) — more expensive than the original obligation.

ATO — Payday Super guidance (from 1 July 2026) →

Sole traders and personal super

Sole traders are not required to pay themselves super — but failing to make personal contributions means retiring without a significant asset. The general concessional contributions cap for 2026–27 is $30,000 (verify the current cap with the ATO as this changes over time). 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.

The super-as-business-expense trap

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.

SMSF for workshop owners

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.