Starting a business is a dream for many Australians, but finding the funds to get it off the ground can be daunting. But, like any big financial decision, it’s important to understand the pros and cons and seek professional advice before moving. That’s where the question of “can I use my super to start a business?” comes in.
In this comprehensive guide, I’ll take you through the nitty-gritty details of using your super to start a business, including eligibility, the rollover process, tax implications, and more. So, if you’re ready to turn your entrepreneurial dreams into a reality, buckle up and let’s get started!
But before we dive into the nitty-gritty details, let’s take a step back and answer the question: what is superannuation?
Financial Disclaimer: The information provided in this guide is for general informational purposes only and is not intended as financial, legal, or tax advice. It is not a substitute for professional advice and should not be relied upon in making financial decisions. Before using your super to start a business, it is important to seek professional advice from a financial advisor, accountant, or solicitor to ensure you understand the risks and benefits involved and are in compliance with all relevant laws and regulations. The author and publisher of this guide do not accept any liability for any loss or damage caused by reliance on the information provided.
Superannuation is a fancy word for your retirement savings. It’s a long-term investment you make throughout your working years, so you’ll have a comfortable nest egg when you retire. Your employer contributes a portion of your salary into your super fund each pay period, and you may also be able to make additional contributions yourself. The idea is that your super fund will grow over time and provide you with a comfortable retirement income.
But what if you want to use your hard-earned super to start a business instead of saving it for retirement? Can you do that?
The answer is yes, but with a few conditions.
So, what do you need to know before using your super to start a business?
The amount you can withdraw from your super will depend on the type of super fund you have and your individual circumstances. In general, you can withdraw up to $10,000 per financial year, but there may be restrictions on how much you can withdraw in total.
No, you must be over the age of 65, have retired, or have met a “condition of release” such as severe financial hardship or permanent incapacity to use your super to start a business.
Using your super to start a business is a complex and risky decision. Still, it can also be a great opportunity to access the capital you need to realise your entrepreneurial dreams. Just remember, starting a business is not for the faint of heart. It takes hard work, dedication, and a lot of courage. But with the right support and guidance, it can also be one of the most rewarding experiences of your life.
Up until working with Casey, we had only had poor to mediocre experiences outsourcing work to agencies. Casey & the team at CJ&CO are the exception to the rule.
Communication was beyond great, his understanding of our vision was phenomenal, and instead of needing babysitting like the other agencies we worked with, he was not only completely dependable but also gave us sound suggestions on how to get better results, at the risk of us not needing him for the initial job we requested (absolute gem).
This has truly been the first time we worked with someone outside of our business that quickly grasped our vision, and that I could completely forget about and would still deliver above expectations.
I honestly can’t wait to work in many more projects together!
Disclaimer
*The information this blog provides is for general informational purposes only and is not intended as financial or professional advice. The information may not reflect current developments and may be changed or updated without notice. Any opinions expressed on this blog are the author’s own and do not necessarily reflect the views of the author’s employer or any other organization. You should not act or rely on any information contained in this blog without first seeking the advice of a professional. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information contained in this blog. The author and affiliated parties assume no liability for any errors or omissions.