Running a small business in Tasmania often means wearing all the hats — sales, admin, marketing, even IT support when the Wi-Fi decides to take a nap. But there’s one hat that too many small business owners forget to put on: their own Small Business Accountant’s advice on superannuation.
It’s easy to prioritise staff wages, supplier bills, or paying down the overdraft. Your own superannuation contributions? They often fall to the bottom of the to-do list. But here’s the catch: if you’re not topping up your super, you’re essentially short-changing your future self.
Why it matters
Unlike employees, who automatically get employer contributions, small business owners need to take the initiative. Neglecting your super can mean arriving at retirement with less than you need — not because you didn’t work hard, but because you didn’t set money aside in the right place. Think of it as paying “future you” first, instead of leaving them with the crumbs after everyone else has been looked after.
Contribution caps to know about
The ATO allows you to make two main types of contributions:
Concessional contributions (before tax) — capped at $30,000 for the 2024/25 financial year.
Non-concessional contributions (after tax) — capped at $120,000 per year, with some “bring-forward” rules if you want to add more.
👉 You can check the details for concessional contributions directly on the ATO website here.
Getting the balance right can reduce your tax bill today and boost your super balance tomorrow.
Small business retirement exemption
If you ever sell your business, the small business CGT retirement exemption may allow you to put up to $500,000 into your super — without counting towards your contribution caps. A handy way to turn the sweat equity you’ve poured into your business into retirement security.
Don’t leave it too late
Super is one of those things that rewards consistency. A few thousand dollars a year, contributed regularly, adds up significantly thanks to compounding returns. Waiting until your 60s to “catch up” is a much harder road.
How Hills Accounting Hobart can help
At Hills Accounting Hobart, we help small business owners get their superannuation strategy working alongside their business goals. Whether it’s making the most of contribution caps, understanding exemptions, or just making sure you’re paying yourself properly — we can guide you through the options.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.
Talk to Kathy and the team today and stay ahead with Hills Insights.
Call Now! 03 6273 7800, or email admin@hillsaccounting.com.au.