Australian freelancers are notoriously bad at paying themselves superannuation. We know we should, but seriously, we’ve got bills to pay.
Which is why The Freelance Collective was interested to hear that a new provider has launched to service Australian freelancers. We like the fact that you can interact with the provider via an app and regularly change how much you contribute to super. This function will no doubt prove hugely valuable to freelancers, who can have substantial income ebbs and flows.
gigSuper has told The Freelance Collective that 75 percent of self-employed freelancers don’t contribute to their superannuation, and one in five have no superannuation at all. All this spells the potential for a financial crisis, not only for the individuals, but for the Australian economy as the gig economy continues to grow, gigSuper tells us.
The provider has designed gigSuper to specifically cater for the increasing number of Australians who are shunning traditional workplaces in favour of flexibility and autonomy.
It takes advantages of this year’s legislative changes around superannuation which finally put self-employed workers on an equal footing with those in traditional employment arrangements.
“With more than 20 years combined experience in delivering online financial products to Australia, we realised this was an opportunity to address the dirty little secret of many self-employed people…that untouched folder of superannuation paperwork in their bottom drawer,” co-founder Peter Stanhope, of Melbourne, says.
He explains that gigSuper is an app-based product as flexible and clever as the gig economy itself, including providing unprecedented flexibility in accessing funds put aside for later in life in the event of unexpected income fluctuations.
“We know that working job-to-job means that self-employed people deal with income fluctuations across the working year, and gigSuper is being designed so that money put aside for superannuation can be accessed for a rainy day,” Stanhope explains.
“A non-super redraw account is linked seamlessly to the gigSuper app, and the invested funds can be converted to super with the tap of a button at the end of the financial year. As escapees from the corporate scene ourselves, we know how difficult it is for people who are self employed to negotiate a superannuation framework designed for the traditional employer/employee relationship.”
The Freelance Collective will be watching closely to see what sort of traction gigSuper can achieve in the Australian freelance market.
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