When you're busy checking fences, moving cattle, or hoping the rain comes, superannuation (super) probably isn’t front of mind. Retirement planning doesn’t exactly beat the excitement of a new header or a good calving season, but if you do want to hang up the boots one day, super is something worth investing in early.
What is Super?
Super is your retirement savings. It is money that is put aside while you work and is invested so it grows over time. Investing in super offers long-term financial benefits, including compound growth and concessional tax treatment.
If you contribute to a super fund voluntarily you may be eligible to claim a tax deduction for these contributions, which may help you to save some of your hard-earned money for your future self.
The tax-deductible super cap is $30,000 for the year ended 30 June 2025. It is important to check with your Moore Australia advisor before making the full contribution though to ensure you are eligible and get the balance right for your personal situation.
Why Young Farmers Shouldn't Ignore It
For self-employed individuals, superannuation is not compulsory, but it is a highly recommended way to save for retirement. Unlike employees, self-employed people are responsible for making their own super contributions, if they choose to. Here’s why it’s worth wrangling your super now:
1. Time is better than a good season
Starting early gives your super time to grow, compounding interest is like the rain after a dry spell: the earlier it comes, the better the results. You don’t have to contribute the full cap amount each year to build a healthy super balance over time.
2. Self-Employed? You’re on your own (sort of)
If you're running your own cropping operation or herd of livestock, no one is paying your super for you. That means unless you’re making voluntary contributions, your super won’t be growing. The good news is that there are other benefits in putting money into super. Along with the previously mentioned tax deduction benefits, the government might chip in some extra if you start small under the super co-contribution program.
3. Succession Planning without selling the top paddock
When it’s time to pass the farm down, having a solid super balance means you might not have to sell stock or machinery just to retire. When you reach retirement age, you are able to access the funds in your super account that have been set aside earning investment income along the way.
4. Super = Insurance too
Most super funds offer insurance policies like income protection, life and disability insurance. This can help you to get covered and start a policy earlier than using your funds outside super for these policies. Your contributions will need to cover the annual premiums but the structure of insurance inside super can potentially not only provide you with some tax benefits but can also help to manage personal risks when you work in a volatile industry like agriculture.
Getting started (without getting bogged)
Our tips for getting started:
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Consolidate your super. The more accounts you have, the more fees you are paying.
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Make regular contributions. You won’t notice it as much if you contribute a smaller amount more regularly, just like a regular savings plan.
How can Moore Australia help
Super might not fertilise your crops or help with branding season, but it’s still one of the most important investments you’ll ever make. Your future self (the one with no 5am starts) will thank you for putting a little aside now so you can make the most of your retirement.
Seek professional help early on. Moore Australia can offer strategic advice and help to tailor your super to suit your farm income and personal retirement goals.