The number of women starting a business has risen rapidly in recent years, with research by the Australian Women Chamber of Commerce & Industry finding almost one million females now operate a business in Australia. If you’re a woman new to running a business, it’s likely that you still view yourself as an “employee” rather than a “business-owner”. If so, you may be missing out on some smart financial and tax incentives available to you. Here are 5 tips to help Australian small business women look after their financial future.
Make regular tax deductible super contributions. 
When you work for yourself it’s easy to direct all available cash to building up the business. But it’s also important to put a little aside for the future. So rather than wait until the end of the financial year to contribute to your super fund, why not contribute every quarter when you submit your Business Activity Statements (BAS).
Don’t miss out on government incentives.
If you earn less than $49,488 a year, you might be eligible for the government co-contribution incentive. This is a scheme through which the government will contribute up to $500 to your super fund if your income is below this threshold. It’s a great way to make a guaranteed, tax-free 50% return on an investment.
Consider spouse contributions.
Another way to keep money coming into your super fund is through spouse super contributions, which is a government program that allows spouses to make a contribution to the super funds of their low income-earning partners. It’s especially useful during the early stages of your business, when your income has not reached $13,800. An added bonus is that your spouse may also receive an 18% tax offset by making the contribution.
Pay less for life insurance through super.
Life and TPD insurance is generally tax deductible if it’s paid for through your super fund. If you run an early-stage venture, it might make sense to put your life insurance in your super fund to take advantage of this benefit.
Think about how you own your business property.
There can be enormous tax savings from buying your business premises with your self-managed super fund. It’s worth asking your financial advisor about this to see if it makes sense for you. It’s all too easy to become caught up spending time running your business, without spending adequate time on your long-term financial health. Speak to a qualified professional advisor to find out more. This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation and needs.
