As a sole trader, nobody pays super for you. There is no employer topping up a fund every payday, so your retirement savings only grow if you put money in yourself. The upside is that personal contributions can often reduce your tax bill.
This guide covers super rules for sole traders for the 2025-26 tax return now being lodged and the 2026-27 income year. It explains personal deductible contributions, the notice of intent, the contribution caps, the government co-contribution and your obligations once you hire staff. Every figure was checked against the ATO page on super for sole traders and the ATO contribution caps table.
It is written for self-employed tradies, consultants, rideshare drivers and other sole traders. If you want to see what else you can claim, read our guide to sole trader tax deductions.
Key takeaways
- Sole traders do not have to pay super guarantee for themselves.
- Personal contributions can be claimed as a deduction if you lodge a notice of intent and get an acknowledgement first.
- Concessional cap: $30,000 for 2025-26 and $32,500 for 2026-27.
- Deducted contributions are taxed at 15% in the fund.
- Government co-contribution: up to $500 on non-deducted contributions for lower income earners.
- Employees of a sole trader must receive super at 12%, paid within 7 business days of payday from 1 July 2026.
Sole trader super at a glance
| Item | 2025-26 | 2026-27 |
|---|---|---|
| Super guarantee for yourself | Not required | Not required |
| Super guarantee for employees | 12% | 12% |
| Concessional contributions cap | $30,000 | $32,500 |
| Non-concessional contributions cap | $120,000 | $130,000 |
| Co-contribution maximum | $500 (50c per $1) | $500 (50c per $1) |
| Co-contribution income range | Full below $47,488, nil from $62,488 | Full below $49,293, nil from $64,293 |
Source: ATO – super for sole traders and partnerships, ATO – contributions caps, ATO – government contributions, ATO – super guarantee rates, checked 7 October 2026.
Do sole traders have to pay super?
Not for themselves. The ATO states that self-employed sole traders and partners do not have to pay super guarantee for their own earnings. Super for yourself is voluntary.
It is a different story once you hire staff. Eligible employees must receive super guarantee at 12% of qualifying earnings, as shown on the ATO super guarantee rates page. From 1 July 2026, Payday Super requires the money to reach the employee’s fund within 7 business days after each payday. Our guides to superannuation obligations for employers, Payday Super and unpaid super penalties explain the employer side.
How can a sole trader contribute to super?
There are two main types of personal contribution. Which one suits you depends on your income and whether you want a deduction now.
| Feature | Concessional (deducted) | Non-concessional (not deducted) |
|---|---|---|
| Paid from | Your own money, then claimed as a deduction | Your own after-tax money |
| Tax in the fund | 15% | Nil on the way in |
| Reduces your taxable income? | Yes | No |
| Annual cap 2025-26 / 2026-27 | $30,000 / $32,500 | $120,000 / $130,000 |
| Co-contribution eligible? | No | Yes, if income tests are met |
Concessional contributions work much like a salary sacrifice arrangement does for employees: the money goes into super before income tax. For more on the limits, see our guide to super contribution caps.
How do you claim a deduction for personal contributions?
The ATO rules for personal super contributions require you to:
- Contribute to a complying super fund that holds your TFN.
- Lodge a notice of intent to claim a deduction with that fund, in the approved form.
- Get the acknowledgement from the fund before the earlier of the day you lodge your tax return or the end of the next income year.
- Claim the deduction in your individual tax return.
If you are 67 to 74, you also need to meet the work test or the work test exemption. The ATO also notes that Division 293 tax can apply when your combined income and concessional contributions exceed $250,000.
Carrying forward unused cap amounts
If your total super balance was under $500,000 at 30 June of the previous year, the ATO concessional cap rules let you use unused cap amounts from up to 5 previous years. This helps sole traders with uneven income make a larger deductible contribution in a strong year.
What is the government co-contribution?
If you make a personal contribution and do not claim a deduction for it, the government may add 50 cents for every dollar, up to $500. For 2025-26 the full amount is available below $47,488 of income, phasing out to nil at $62,488. For 2026-27 the thresholds are $49,293 and $64,293, according to the ATO government contributions page. Other eligibility tests also apply.
Worked example: Jasmin claims a $15,000 contribution for 2025-26
Jasmin is a sole trader graphic designer. Her taxable income for 2025-26 would be $110,000. Before 30 June 2026 she contributed $15,000 to super, lodged a notice of intent and received the acknowledgement.
New taxable income: $110,000 – $15,000 = $95,000. Both figures sit in the 30% bracket for 2025-26 (ATO resident tax rates).
Income tax and Medicare saved: $15,000 x (30% + 2%) = $4,800.
Tax in the fund: $15,000 x 15% = $2,250, so her super grows by $12,750.
Net tax benefit: $4,800 – $2,250 = $2,550. The $15,000 is within the $30,000 cap.
How much super should a sole trader contribute?
There is no required amount. A simple benchmark is the 12% SG rate an employer would pay. For a sole trader with $90,000 of profit, that is $90,000 x 12% = $10,800 a year. Check our 2025-26 tax rates guide to see what a deduction is worth at your income.
Regular contributions through the year make cash flow easier than one large payment in June. Contributions must reach the fund by 30 June to count in that year.
What records should you keep for your super?
Your super deduction is only as safe as the paperwork behind it. If the ATO reviews your return, it will want to see that the contribution was made in the right year, that the fund received your notice of intent and that you held the acknowledgement before you lodged. Keep a simple super folder for each year with:
- Payment evidence – the bank statement or BPAY receipt showing the date and amount paid to the fund.
- Notice of intent – a copy of the form you lodged with the fund, including any later variation.
- Fund acknowledgement – the letter or message confirming the amount you can claim.
- Annual member statement – to check all concessional contributions against the cap.
- TFN confirmation – the ATO notes that a fund without your TFN must take extra tax from contributions.
The ATO generally expects you to keep tax records for 5 years from when you lodge your return. See the ATO guidance on records you need to keep.
Rule of thumb: Contribute early, send the notice of intent straight away, and do not lodge your tax return until the fund’s acknowledgement letter arrives.
Common mistakes with sole trader super
- Lodging the return before the acknowledgement – the deduction can be lost.
- Paying on 30 June – a contribution received in July counts in the next year.
- Recording it as a business expense – it is a personal deduction, not a business cost.
- Going over the cap – include all concessional contributions across every fund.
- Claiming the co-contribution on deducted money – only non-deducted contributions qualify.
FAQ about sole trader superannuation
Do sole traders have to pay super for themselves?
No. The ATO says self-employed sole traders and partners do not have to pay super guarantee for themselves. Contributing is voluntary. Many sole traders still contribute because personal contributions can be claimed as a tax deduction, subject to the notice of intent rules and the concessional contributions cap.
What is the concessional cap for 2025-26 and 2026-27?
The concessional contributions cap is $30,000 for 2025-26 and $32,500 for 2026-27. It covers all before-tax contributions across all your funds, including personal contributions you claim as a deduction and any employer contributions. If your total super balance was under $500,000, you may be able to use unused cap amounts from earlier years.
When do I need to send the notice of intent?
You must give your fund a valid notice of intent and receive its acknowledgement before the earlier of the day you lodge your tax return for that year or the end of the following income year. If you lodge your return first, you may lose the deduction, so send the notice and wait for the letter.
Can I get the government co-contribution as a sole trader?
Possibly. For 2025-26 the government matches 50 cents per dollar of eligible personal contributions, up to $500, if your income is below $47,488, phasing out at $62,488. For 2026-27 the thresholds are $49,293 and $64,293. You cannot receive it on contributions you claim as a tax deduction.
Do I need to pay super for my employees?
Yes. Once you employ eligible workers, you must pay super guarantee for them at 12%. From 1 July 2026, under Payday Super, the contribution must be received by each employee’s fund within 7 business days after payday. Missing it can lead to the super guarantee charge, so build super into every pay run.
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This article is general information only and is not personal tax or legal advice. Figures and rules were checked against the ATO pages on super for sole traders, personal super contributions, contribution caps, government contributions, super guarantee rates, Payday Super and resident tax rates on 7 October 2026. Rates and thresholds change, so confirm the current position before acting.
