Nobody is paying your super for you
When you work as an employee, your employer contributes 11.5% of your salary to your superannuation fund. When you are a self employed commission sales agent, nobody does this for you. If you do not make voluntary contributions, your super balance stagnates while your employed peers' balances grow year after year.
This is one of the most overlooked financial risks for independent agents.
Are you actually self employed?
First, make sure you understand your employment status. If you are operating as a sole trader with an ABN, invoicing businesses for your commissions, you are self employed and responsible for your own super.
If a business treats you like an employee (sets your hours, provides equipment, controls how you work), you might be entitled to super contributions from them, regardless of what they call the arrangement. The ATO has clear guidelines on this distinction.
How much should you contribute?
A good starting point is to match what an employer would contribute: 11.5% of your gross commission income. If you earn $100,000 in commissions, that means contributing $11,500 to your super fund.
You do not have to contribute this exact amount. Any contribution is better than none. But the longer you go without contributing, the harder it becomes to catch up later.
The tax benefit
Voluntary super contributions up to $30,000 per year (as of the current cap) are tax deductible. This means contributing to super actually reduces your tax bill. If you are in the 37% tax bracket, a $10,000 super contribution saves you $3,700 in tax while only costing $1,500 in additional super tax (15% contributions tax).
This makes super contributions one of the most tax effective things you can do as a self employed person.
How to set it up
Choose a super fund if you do not already have one. Most industry funds and retail funds accept voluntary contributions from self employed people. Set up a regular transfer from your business account, either monthly or quarterly.
Treat it like a bill. It is not optional spending. It is paying your future self.
Do not raid your super
It can be tempting during lean months to think about accessing your super early. Resist this temptation. Early access has strict eligibility criteria, and withdrawing super early has long term consequences due to lost compound growth.
Review annually
Each year, review your super balance, your contribution amount, and your investment options. As your commission income grows, your contributions should grow too. A quick annual check ensures you are on track for a comfortable retirement, even without an employer making contributions on your behalf.