Smart superannuation strategies for small business women
Whether you’re running a floristry or catering business, or selling delicious homemade condiments and looking to take your flair for business further, it’s important to set aside time to plan for your own financial future. Here’s a few tips on what you need to consider.
Small business women are often great business owners but poor managers when it comes to their own financial futures. As a business owner, you may be guilty of putting the business needs ahead of your own financial future. Wealth management firm BT Financial Group shares some smart ways of how to protect your financial future through superannuation.
Treat your business as a business
You may be doing freelance or contract work, or working from home without a formal business structure, however, you need to remember that you’re the manager of the business and need to put in place the same disciplines as larger businesses. That means reviewing your business plan regularly, paying careful attention to cash flow and putting money aside for the future.
Make regular tax deductible super contributions
Rather than waiting until June to make super contributions, try contributing every quarter when you do your business activity statements. The flipside to this flexibility is that they have no obligation to contribute to super.
Don’t miss out on the co-contribution
This should be the top of the priority list for women whose businesses earn less than $48,516 a year. It’s a great way to make a guaranteed tax free 50% return on an investment.
Consider spouse contributions
Spouse super contributions can be a great way to keep money coming into your super when you’re at the early stages of your business, and your income has not yet reached $13,800. Plus your spouse receives an 18% tax offset.
Pay less for life insurance by paying through super
Life and total and permanent disability (TPD) insurance is tax deductible if paid through super. For cash-strapped small business owners, it makes sense to pay premiums as before-tax contributions.
Think about how you own your business property
There can be enormous tax savings from contributing your business premises into your self-managed super fund. It’s definitely worth asking your financial planner or accountant to see if it makes sense for you.