Almost half of Australia’s small businesses are not paying superannuation, according to new research.
About 45% of respondents to a national survey of 2,000 small business operators in January 2025, most running businesses with four or fewer employees, did not consistently put money into super, AMP Bank said in a media release.
Instead they often choose to reinvest in their business or manage immediate cash flow pressures.
The banking arm of one of Australia’s oldest and largest financial services companies AMP said Australia could be “heading toward a retirement crisis hidden in plain sight”.
Calling them ‘solopreneurs’, AMP Bank said they were risking a $500,000 shortfall in retirement.
None of Australia’s estimated 2.2 million self-employed people are legally required to make super contributions, whilst 90% of the broad workforce receive regular super contributions through the 12% Superannuation Guarantee.
“Our super system is built for employees, not entrepreneurs,” Director of AMP Bank GO John Arnott said.
“Sole traders are the backbone of Australian business, but many are putting their future financial security at risk by neglecting super.”
ANM Bank said small business owners could boost their super by:
- staying informed about regulatory changes and smarter financial practices
- contributing through their wages or making lump-sum contributions from profits when possible
- using government incentives like super co-contributions or tax-deductible personal contributions
- embracing technology like accounting software of apps, and
- seeking support from financial advisers or their super funds.
