February 4, 2021
Superannuation… it gets a bad rap. But let’s face it – a bougie and financially secure retirement sounds pretty appealing. Putting money into your super is the easiest way to avoid paying huge taxes on your income as you pay 15% vs our top tax rate of 47%. It’s also protected if you ever go bankrupt, and it can set you up with a very comfy nest egg.
If you work in hospo, you need to be extra diligent about keeping an eye on your super. The hospitality industry is notorious for dodging their employees’ super entitlements. According to ABC News, hospitality workers have been forced to chase up millions in unpaid super. There are workers who have been in the industry for 10+ years with next to no super, looking at a bleak retirement.
Super should be at least 9.5% of your pre-tax wages and your boss pays it directly into your super account.
Under the superannuation guarantee, employers have to pay superannuation contributions if:
This applies to full-time, part-time and casual employees, and temporary residents.
Yes, even if you’re on a working holiday visa, it’s still mandatory for your employer to pay you super.
It’s your choice which super fund you want to use, but as a general rule, industry super funds perform better than retail funds. There is even a hospitality superannuation fund. Here is a website where you can compare super funds and find a low-cost one.
Think you have a few super accounts from multiple jobs? You need to sort that out, stat. When you have more than one super account, you’re paying multiple account management fees and bleeding money out of your hard-earned nest egg.
To claim and merge our accounts, follow these steps:
Check your payslip and calculate how much super they owe you each quarter. Make it a habit to log into your super account every quarter to check your employer has made the mandatory contributions. If they don’t, this is a serious form of wage theft.
Download the Hospo Voice Mobilise app to know your rights and how to chase up unpaid super. Be diligent!
Some dodgy hospo establishments will ask you for your super and tax paperwork, but then still insist they pay cash so they can keep it off the books. This is illegal and you can report them if they insist on paying you this way. Ask a question on our Mobilise app to find out how.
Yes, but only if you can. If you’re just making enough money to put food on the table, then extra super contributions might be a step too far. But if you’ve got a bit of extra cash, consider adding some of it to your super fund. Future you will thank you.
Hot tip: If you earn a low to middle income and make personal (after-tax) super contributions, the government could pay you up to $500 directly into your super each year. Visit the Money Smart site to check your eligibility.
The earlier you sort out your super and get it working as efficiently as possible, you’re going to have a much better time during retirement. If you’re dreaming about owning a speedboat and joining the local yacht club, you could make it happen with a decent superannuation nest egg!
Download the mobilise app now to check your superannuation for hospitality worker rights and access help when you need it.
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