Automated tax and super contributions help avoid a nasty surprise on July 1

By Jay Nawaz , Chief Product Officer

Support workers often come to Mable because they love supporting their clients but are looking for more independence and flexibility in how they work. However, running a small business may not be their forte. One of the biggest pain points we hear from independent support workers is that they want to easily put aside money for things such as tax and super when they submit their invoices so they know at tax time, they are covered.

Managing these contributions typically requires spending time transferring funds between bank accounts and managing the extra admin that comes along with preparing for the end of the financial year. By not doing this, independent contractors risk not having enough funds set aside when it comes to tax time, leading to debt anxiety.

According to The Association of Superannuation Funds of Australia Limited (ASFA), around 20 per cent of self-employed people do not have superannuation.

However, research by YouGov, conducted on behalf of Mable with independent support workers on the platform, found four in five people were putting aside earnings to pay their income tax. And three in five were putting aside earnings for superannuation.

At Mable, we wanted to enable independent support workers to easily take control of their money, safeguard their future and work towards bridging the super gap by providing a seamless way for them to put towards their tax and superannuation.?

To do this, we have introduced 'Tax & super sync'. This free, inbuilt tool is a new way for independent support workers on Mable to make their small business admin easy, with automated allocations for tax and super contributions sent to their nominated bank account.?

Here’s how it works:?

• Independent support workers choose the percentage they want to set aside from each invoice—this could be as little as 5 per cent or as much as 50 per cent.?
• They decide where to direct the payouts, with separate bank accounts able to be nominated for super and tax contributions.

The feature allows independent support workers to stay financially flexible by managing and pausing contributions whenever needed within the Mable platform. They can also keep track of their contributions with payment summaries and detailed transactions, which will assist at tax time.

In a trial with 600 independent support workers, we were overwhelmed with the positive responses to these new features. The common feedback was gratitude about how this feature removes the stress and complexities of navigating their income management.?

Independent Support Worker on Mable, Belinda, said, “The Tax & super sync feature is really fabulous. It's super easy to use, and once set up, I don’t have to do anything. I have dedicated funds placed into a separate bank account, which then I pay tax and super from that account quarterly. I would encourage other support workers to use it as well.”

It’s exciting to offer new business tools like this that help support workers meet their tax obligations and avoid debt by encouraging people to put money away for retirement.

To find out more, visit Tax & super sync | Mable.