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Your small business end of financial year super checklist

Your small business end of financial year super checklist

As the countdown to the end of financial year begins, here are five ways to make sure you’re getting the most of your super – for both you and your business.

As a business owner, the end of financial year can be a very busy time. On top of the usual demands of running your business, you need to get your finances sorted and plans in place for the year ahead.

It’s also important to review your personal and business super. By spending just a little time on super now, you may save yourself headaches down the track, avoid expensive penalties and take advantage of some tax concessions.

So here are five essential items for your super To Do list this financial year.

1. Be ready for contribution deadlines

All Super Guarantee contributions for the last quarter of the 2016/17 financial year must be processed by 28 July 2017. If you miss this deadline, you’ll incur a penalty from the ATO. Each super fund will have their own cut-off date for accepting contributions in time to meet the 28 July deadline, so make sure you submit your payment in plenty of time.

2. Pay early to claim a tax deduction

If you want to qualify for a tax deduction for your employees’ super contributions, you’ll need to make your Super Guarantee payment even earlier — it will need to be processed before 30 June for you to claim a tax deduction for the 2016/17 financial year.

3. Don’t forget your own super

It’s easy to neglect your super when you’re running your own business. Recent research shows that business owners and the self-employed have lower average super balances than employees — and around one in four have no super savings at all. [1]

If you don’t make an active effort to keep adding to your retirement savings, you could find yourself with a shortfall. And remember that super may be a tax effective investment, with most contributions and investment earnings taxed at just 15%.

If you’re self-employed, you may also claim a tax deduction for any personal contributions you make to your super account. Just make sure you complete a Notice of Intent to Claim or Vary a Tax Deduction for Personal Contributions form and send it to your super fund.

4. Ensure you’re SuperStream compliant

In October 2016, the government made it compulsory for businesses with 19 or fewer employees to use a SuperStream compliant payment channel. If you're already sending employee information and paying super electronically, there’s nothing more you need to do. But if you’re not doing it yet, you need to find a solution that will allow you to meet your SuperStream obligations.

5. Make managing super easy

While staying compliant is an essential first step, you’ll also want to make managing super as easy, efficient and cost-effective as you can. So it’s worth looking for the fastest and easiest business solution.

A simple way to stay on top of your employer contributions is to choose Essential Super as the default fund for your business. Essential Super is SuperStream compliant and MySuper approved; it’s also a simple and cost-effective solution designed to make managing super easy for your business.

With Essential Super, you can set up and manage your employees’ super contributions in NetBank, even if they’re with a different fund. So you can manage employee super in the same convenient place as your business accounts, and stay on top of your super obligations without expensive administrative overheads.

Find out more about Essential Super for your business or Open an Essential Super account in NetBank

We’re here to help

If you have any questions, call us on 13 4074 (8am to 7pm [AEST], Monday to Friday) or email contactessentialsuper@cba.com.au

[1] Research from the Association of Superannuation Funds of Australia (ASFA), Super and the self-employed, May 2016.

Things you should know: Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the trustee and issuer of interests in Commonwealth Essential Super ABN 56 601 925 435. This information is not financial product advice and does not take into account any person’s individual objectives, financial circumstances or needs. You should read the Product Disclosure Statement (PDS) for Commonwealth Essential Super and consider talking to a financial adviser before deciding whether to acquire or continue to hold this product. Ask us in branch for a PDS or you can access this online at commbank.com.au/essentialsuperbusiness Colonial First State is a wholly owned subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 (‘the Bank’). The Bank and its subsidiaries do not guarantee the performance of Essential Super or the repayment of capital by Essential Super. An investment in Essential Super is via a superannuation trust and is therefore not an investment in, deposit with or other liability of the Bank or its subsidiaries. An investment in Essential Super is subject to risk, loss of income and capital invested. Where we refer to 'we', 'us', or 'our', we mean Colonial First State. Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information. Colonial First State Investments Limited is also not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.