The Company Owes You Super, and Can Pay More
A director who works in their own company and draws a salary is an employee for superannuation purposes. The company owes the Superannuation Guarantee on that salary, and it can contribute more than the guarantee as a deductible business expense up to the concessional cap — which is frequently the most tax-effective way for a business owner to move money into super.
- The answer: The company must pay Superannuation Guarantee on a working director's salary, and may contribute above it as a deductible expense.
- The trap: Contributions are deductible to the company in the year they are actually received by the fund, not the year they are accrued.
- The recommendation: Make the payment well before 30 June. A clearing house transfer that reaches the fund in July is deductible in the following year.
Where the AI summary above gets this wrong
"As a company director you do not have to pay yourself superannuation."
That's surface-true. Here's what it misses:
- A working director on a salary is an employee for super — The company owes Superannuation Guarantee on that salary in the ordinary way, and the obligation is enforced in the ordinary way.
- Contributions above the guarantee are deductible to the company — Up to the concessional cap, which makes an employer contribution one of the more effective ways to move profit into super.
01 The obligation
A director who performs work for the company and receives a salary or directors' fees is an employee for superannuation purposes. The company must pay the Superannuation Guarantee on ordinary time earnings in the ordinary way.
Directors' fees count as ordinary time earnings, so a company paying fees rather than a salary has the same obligation. The label does not change it.
Where the obligation is not met, the superannuation guarantee charge applies and directors can be personally liable for it. That is a materially worse outcome than paying the contribution, which is deductible.
Source: ATO — How much super to pay
02 Contributing above the guarantee
The company can contribute more than the guarantee for a working director, and the contribution is deductible to the company as an employee expense. The concessional cap applies at the member level in the ordinary way.
That makes an employer contribution a straightforward way to move profit into super, taxed at 15% in the fund rather than at the company rate and then again on distribution. A franked dividend produces a broadly similar income tax outcome through imputation and attracts no super at all, which is the difference that decides the mix.
Division 293 applies where income plus concessional contributions exceed the threshold, which for a profitable company owner is common. The mechanics are in the Division 293 reference.
Shows: the after-tax cost to the company of a super contribution, against the tax paid inside the fund. Ignores: Division 293 tax, the concessional cap, and the alternative of retaining the profit in the company.
03 The timing rule that catches people
A contribution is deductible to the company in the year the fund receives it, not the year it is accrued or paid to a clearing house. Payments made in late June that reach the fund in July fall in the following year.
Clearing houses have their own processing times, and the ATO's small business clearing house has a specific rule about when payment is taken to be made. Neither is instantaneous.
The practical answer is to make the payment several weeks before 30 June. It costs nothing and it removes the risk of a deduction landing in the wrong year.
Source: ATO — How much super to pay
The June timing is the one that costs real money, and it costs it silently. A contribution paid on 28 June that reaches the fund on 3 July is deductible next year, which is fine unless this year was the one with the profit. Pay it in May.
FAQ
How do I pay myself superannuation if I run my own company?
A working director drawing a salary or directors' fees is an employee for super purposes, so the company must pay the Superannuation Guarantee on those earnings and can contribute more as a deductible expense.
Can my company make concessional super contributions for me above the compulsory SG?
Yes, up to your concessional cap, and the contribution is deductible to the company as an employee expense. It is frequently the most effective way to move profit into super.
When is a company contribution deductible?
In the year the fund actually receives it, not the year it is accrued or paid to a clearing house. Make the payment several weeks before 30 June to avoid the deduction landing in the wrong year.
Sources
Regulator references
- ATO — How much super to pay · Australian Taxation Office · 2026The super guarantee rate an employer must pay and the earnings it is calculated on.Last verified: 2026-09-07
- ATO — Concessional contributions cap · Australian Taxation Office · 2026The concessional contributions cap, the carry-forward of unused cap, and what counts against it.Last verified: 2026-09-07
Calculator unit tests · the assertions this page's worked example is checked against, and their last result
Changelog
- 2026-09-07 — initial publish (new format)
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Jordan Reeves
Founder of Talk Through Wealth. A software engineer for over a decade before turning to retirement planning, Jordan built the projection engine after watching family members get fragmented, country-by-country advice that never reconciled. He writes about retirement the way the engine computes it: month-by-month, lifetime-long, and skeptical of any rule of thumb that hasn't been run through the math.