Business owners — don’t fall

into this super trap

Running a business is never easy. Finding and keeping customers is just the
start. There are also people to manage, bills to pay and a mountain of
paperwork to tackle. So it’s not surprising many business owners never get
around to their own superannuation.

While being your own boss is great, there is a downside. When you’re in the driver’s seat,
there’s no-one else to take care of your superannuation — it’s all up to you. And many
business owners are too busy looking after their employees’ super to worry about their own.

Research from the Australian Super Funds Association (ASFA) shows that 29% of self-
employed Australians have no super savings at all1. That’s right — zero superannuation.
Another 44% have low super balances.

That’s a recipe for disaster. Without enough super, you risk running out of cash and
spending your final years in poverty.

But the good news is it’s not too late to change. Here are three easy steps you can take to
boost your super and take control of the future.

Step 1. Pay into super every month

It may seem obvious — but unless you start paying into super now, you could struggle to
catch up later. According to ASFA, a retired couple needs a super lump sum of at least
$510,000 for a comfortable retirement, even with the pension2. That’s more than twice the
amount someone on $50,000 a year is likely to rack up over their career, even after the
super guarantee rate jumps to 12% (which it’s set to do by 2019).

General Advice Warning: This article has been sourced from Colonial First State# (www.colonialfirststate.com.au). Though all
care is taken at the time of publication, the information does not constitute advice. Please use this article as general
information only, as it does not take into account your individual circumstance. Snelleman Tom makes no representation or
warranty as to the accuracy, reliability timeliness or completeness or material in this newsletter. No liability is accepted for
any loss as a result of reliance of this information.

* Snelleman Tom Consulting Accountants and Financial Planners: Snelleman Tom Pty Ltd (ABN 97 093 585 614) and
Snelleman Tom Financial Services Pty Ltd (ABN 97 064 306 010).

# Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) based on its
understanding of current regulatory requirements and laws as at 20 September 2013. While all care has been taken in the
preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no
person including Colonial First State or any member of the Commonwealth Bank group of companies, accepts responsibility for any
loss suffered by any person arising from reliance on this information

1|Page www.snellemantom.com.au
The sooner you start contributing to super, the more time you have to earn returns on your
returns. So it makes sense to contribute to your super every month — not just when the
end of financial year rolls around.

Step 2. Receive a tax break

Another reason to start putting cash into super is that you can earn a handy tax break —
both now and every year until you retire.

This financial year, most self-employed Australians can claim a tax deduction for their
personal contributions and instead have them taxed at just 15% or less within their super
fund (subject to certain limits). But remember — everyone’s situation is different, so check
with your accountant first.

Step 3. Save on tax when you sell business assets

You’ve worked hard to build a fantastic business. When the time comes to sell, you want to
make the most of it. Putting the profit in to super is a great way to do just that.

Thanks to the government’s small business retirement tax exemption, most small business
owners can contribute up to $500,000 from the sale of business assets into super over a
lifetime, without paying any capital gains tax. If you’ve owned a business asset for 15
years, you may be able to contribute even more — up to
$1.315.

You don’t even have to retire. Simply sell a business asset, Need more
put the cash into super and keep on working. information?
Please speak with your
financial adviser or contact
But as always, tax rules are complex, so it’s important to Snelleman Tom on 07
3871 0081 to discuss your
talk to us or your accountant and find out exactly how they personal circumstances.
apply to you.

General Advice Warning: This article has been sourced from Colonial First State# (www.colonialfirststate.com.au). Though all
care is taken at the time of publication, the information does not constitute advice. Please use this article as general
information only, as it does not take into account your individual circumstance. Snelleman Tom makes no representation or
warranty as to the accuracy, reliability timeliness or completeness or material in this newsletter. No liability is accepted for
any loss as a result of reliance of this information.

* Snelleman Tom Consulting Accountants and Financial Planners: Snelleman Tom Pty Ltd (ABN 97 093 585 614) and
Snelleman Tom Financial Services Pty Ltd (ABN 97 064 306 010).

# Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) based on its
understanding of current regulatory requirements and laws as at 20 September 2013. While all care has been taken in the
preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no
person including Colonial First State or any member of the Commonwealth Bank group of companies, accepts responsibility for any
loss suffered by any person arising from reliance on this information

2|Page www.snellemantom.com.au
General Advice Warning: This article has been sourced from Colonial First State# (www.colonialfirststate.com.au). Though all
care is taken at the time of publication, the information does not constitute advice. Please use this article as general
information only, as it does not take into account your individual circumstance. Snelleman Tom makes no representation or
warranty as to the accuracy, reliability timeliness or completeness or material in this newsletter. No liability is accepted for
any loss as a result of reliance of this information.

* Snelleman Tom Consulting Accountants and Financial Planners: Snelleman Tom Pty Ltd (ABN 97 093 585 614) and
Snelleman Tom Financial Services Pty Ltd (ABN 97 064 306 010).

# Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) based on its
understanding of current regulatory requirements and laws as at 20 September 2013. While all care has been taken in the
preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no
person including Colonial First State or any member of the Commonwealth Bank group of companies, accepts responsibility for any
loss suffered by any person arising from reliance on this information

3|Page www.snellemantom.com.au