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Superannuation | How to...

employee’s chosen fund, they must lodge an SGC statement and pay a penalty charge to the Australian Tax Office. This is the amount of super that needs to be repaid to the employee plus interest at 10 percent per annum, and an admin fee of $20 per quarter.

business owner superannuation SGC obligations If the business has been set up as a sole trader, owners are classified as self-employed and are therefore not required to make super contributions on their own behalf. However, if they are an employee of the business, and receive a salary, they must make SGC payments on the same basis as any other employee. The same penalties will apply if they fail to do so. Other benefits Even those who aren’t obliged to pay themselves superannuation should consider the benefits. Tax-deductible superannuation contributions if you are self-employed is the most tax-effective way to save for retirement. Superannuation is also good way to receive money for the business in a tax-effective way. Super contributions are only taxed at 15 percent, while salary, bonuses andAeven dividends be_taxed rate. D_ F R J U S may SEP 1 2 .at pa higher df P a ge 1 Another consideration is that holding certain

insurance policies through superannuation can also be very tax-effective, as the insurance premiums are being paid through pre-tax income. A superannuation fund may be able to own commercial property such as franchise premises. The business then pays rent to the super fund; this is tax-effective and can help finance the business.

All business owners should think carefully about paying themselves superannuation contributions Finally, superannuation provides an excellent form of asset protection. Generally, assets accumulated in superannuation through normal contributions cannot be claimed by creditors - a useful form of asset protection for business owners. All franchisees should think carefully about paying themselves superannuation contributions, even 1 4 /if 0they 8 / don’t 1 2 , pay9themselves : 4 1 A Ma full salary while the business is in start-up mode. F

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Franchising Magazine May / June 2013  
Franchising Magazine May / June 2013  

What should you look for in a franchise? Find out nine key elements to consider before you purchase in the latest issue of Franchising magaz...