Super discrimination against small business ends

There have been many examples over the years of small business owners being disadvantaged when it came to income tax and superannuation. Thankfully, under the fair and sustainable superannuation system legislation passed during the 2017 financial year, the last of the discriminations against business owners with regard to superannuation contributions was removed.

Small business owners have historically been disadvantaged with regard to the amount that they could claim as a deductible superannuation contribution, which was known as a self-employed super contribution. Prior to the rules changing a small business owner could not make a deductible superannuation contribution if they had ceased employment partway through a financial year, except in very limited circumstances.

Under the old rules that applied until June 30, 2017, the only way that someone could make a tax-deductible super contribution was if they had not received, or been entitled to receive, employer superannuation contribution benefits. The entitlement to receive superannuation benefits rule effectively meant someone working as a contractor, where it was later held by the ATO that they were in fact an employee of the person they contracted to, would have any tax-deductible contributions they had made disallowed, and the business they contracted to would be liable to make superannuation guarantee contributions on their behalf. Read more

Max Newnham - Brisbane Times - 29 Jan 2018