I have just registered as a sole trader. I will obviously have to set aside my own tax and super. Will concessional or non concessional contributions to super will be more beneficial to me?

Hi there,

Ok for super advice you need to talk to a licensed advisor.

Things to know

1. As a sole trader you don't need to pay super but saying that I personally think it's a great idea to have some savings for tomorrow.

2. As for setting aside you tax we have a progressive tax system which means you pay different percentage based on your income. Although 100k attracts a 40 something percent rate the effective tax rate for 100k is only 25%. It's good planning to set aside this cash so you don't get caught.


Hope that helped

AJ

Hi Holly,

Your question about super contributions will depend on the income you earn.

The concessional super contributions will be tax deductible so if your income his high enough the deduction could be valuable to you. Otherwise the non-concessional may be the way to go.

As Andrew pointed out, you should seek advice regarding your specific circumstances.

Regards
James