If you're a tradie — chippie, sparky, plumber, or running your own crew — superannuation probably isn't top of mind. But here's the reality: without super, you retire on the Age Pension alone (about $28,000/year for a single). For self-employed tradies who charge $80-$120/hour, that's a massive drop in lifestyle. Here's how to get super working for you.
Super for Self-Employed Tradies — The Basics
If you're a sole trader or run a company where you're the director, you don't have to pay yourself super. No one forces you. But that also means no one is building your retirement savings either.
| If you're a... | Super obligation |
|---|---|
| Sole trader (ABN, working alone) | Not required, but tax-deductible if you contribute |
| Partnership (2+ tradies) | Not required for partners, but recommended |
| Company director (Pty Ltd) | Not required for directors; required for employees |
| Employer (have staff/apprentices) | REQUIRED — 12% SG from July 2025 |
| Employee tradie on wages | Your boss pays 12% SG |
2025-26 Super Contribution Caps
| Cap Type | 2025-26 Limit | Tax Rate |
|---|---|---|
| Concessional (before-tax) | $30,000 | 15% inside super |
| Non-concessional (after-tax) | $120,000 | 0% inside super |
| Carry-forward unused concessional | Up to 5 years | 15% inside super |
💡 Pro tip: If your super balance is under $500,000, you can use unused concessional cap amounts from the last 5 years. So if you contributed $0 for the last 3 years, you could potentially claim up to $90,000 in catch-up concessional contributions this year.
How Much Tax You Save — Real Example
Say you're a self-employed chippie earning $110,000/year. Without super contributions, your tax bill is about $28,467 (2025-26 rates including Medicare Levy).
If you contribute $15,000 to super as a concessional contribution:
| Taxable income drops to | $95,000 |
| New tax bill | $22,342 |
| Tax saved | $6,125 |
| Super tax (15%) | -$2,250 |
| Net benefit | $3,875 + $15,000 in super |
You're $3,875 better off in your pocket AND you've added $15,000 to your retirement savings. That's a win-win.
Best Super Funds for Tradies
Cbus
Built for construction workers. Low fees, strong returns. Industry fund.
Hostplus
Top-performing industry fund. Low fees, excellent long-term returns.
AustralianSuper
Australia's largest fund. Balanced option consistently performs well.
SMSF for Tradies — When It Makes Sense
A Self-Managed Super Fund (SMSF) lets you control your investments directly — including buying commercial property for your business. But it comes with costs:
- Setup costs: $1,500–$3,000
- Annual running costs: $2,000–$5,000 (accounting, audit, ATO levy)
- Recommended minimum balance: $200,000+ to be cost-effective
If your super balance is under $100,000, stick with an industry fund. SMSF only makes sense at higher balances.
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