Bernie discussess the importance of insurance in business.

Bernie's Blog -Question.

Question.

Bernie,  I have a question about super. My husband and I run our own businesses (one each in fact).  Do we really need to have Super ?   Is it compulsory?   Brian and I don't really see the benefit of having it at all.   What if we put a certain amount of money away monthly in the bank and call it super?   At the end when we retire, we can have that money back plus interest. Wouldn't that be better?    Tracey – Fairfield.

Well Tracey,  you are not the first small business owner to ask me that!

Paying superannuation is compulsory for your employees.  If you and your husband operate your businesses as sole traders or in partnership (with each other or other people) then you are not employees and do not have to pay super for yourselves.  If you are employees of a Pty Ltd company then it is compulsory to pay for you as well as other employees.

If you have been with your employer for at least five years and are thinking about leaving your job this financial year - even if you are being made redundant, you can take advantage of temporary rules that can save you tax and get maximum benefit from your super contributions.

Money Made Simple - Bernie answers a question from a local resident about Super.