Do sole traders have to pay superannuation in Australia?

As a sole trader, you are generally not required to pay superannuation for yourself. However, it is a very good idea for your retirement planning. If you choose to make voluntary super contributions, you can usually claim a tax deduction for them, which reduces your taxable income. You must notify your super fund of your intent to claim a deduction using a 'Notice of intent' form. **Note for employers:** If you hire contractors mainly for their labour (even if they have an ABN), you may be required to pay super for them if they are considered 'employees for super purposes'. Always check the ATO's employee/contractor decision tool.

• Voluntary for self, mandatory for employees
• Contributions for yourself are usually tax-deductible
• Reduces your overall taxable income
• Must lodge a 'Notice of intent' with your super fund
• Check rules if you hire other contractors