As someone in the hospitality industry, you’re no doubt working hard, taking orders and balancing trays or preparing and cooking delicious food.
But while you’re busy taking care of customers, who’s taking care of you?
Your superannuation should be. It’s an investment in your future, shaping how comfortably you can retire.
But not all superannuation funds are created equal. How can you choose the best super fund for a brighter, more secure financial future? Let’s find out.
Understanding Superannuation: The Basics
Superannuation is a way of saving for retirement while you’re working.
Your employer contributes a portion of your salary (11.5% as of July 1, 2024) into a superannuation fund at least four times a year, which is invested to grow over time.
You’ll then be provided with a steady income when you retire, supplementing the age pension you’ll receive from the government.
Given the often flexible and varied working patterns in the hospitality industry, superannuation becomes even more crucial.
It ensures that, despite the ups and downs of your work schedule, you’ll have a reliable financial cushion to fall back on in your later years.
Why Super Funds Aren’t “One-Size-Fits-All”
“One-size-fits-all” rarely actually “fits all”, does it? Different super funds offer different features, with some catering better to specific industries, like hospitality.
Key differences between funds can include
- Fees: Administration fees, investment fees, and other superannuation account management charges.
- Investments: Conservative and high-growth options.
- Insurance coverage: Life insurance, total and permanent disability cover, and income protection.
How Superannuation Is Calculated
Super contributions are calculated on an employee’s ordinary time earnings (OTE).
As a hospitality worker, your OTE generally includes
- Wages and salaries: Your base hourly or weekly wage, including any regular bonuses or allowances.
- Shift loadings: Additional pay received for working outside normal hours, such as nights, weekends, or public holidays.
- Paid leave: Payments for annual leave, sick leave, long service leave, and other paid leave.
- Commissions and bonuses: Any additional performance-based earnings.
It’s important to note that superannuation is not calculated on overtime payments, reimbursements, and some allowances, like those for travel or meals.
Hospitality-Specific Superannuation Regulations
Hospitality awards are industry-specific regulations that set minimum pay rates and working conditions for hospitality workers.
They can influence super contributions in several ways.
Higher minimum pay rates from such awards as the Hospitality Industry (General) Award and specific allowances for things like uniforms and tools can increase the amount of super your employer contributes.
Super on paid leave entitlements can also be affected, as these are often arranged differently in the hospitality industry.
Leave entitlement variations can include higher pay rates for working on public holidays, provisions for time off in lieu of public holidays, and how long service leave is accrued and taken, especially for casual or part-time workers.
Additionally, some hospitality awards can include provisions for special types of leave, such as study or attendance at industry-specific training and certification programs, again affecting OTE and super.
Finding the Best Super Fund for Hospitality Workers
When choosing your hospitality superannuation fund, look for
- Low fees to keep more of your money invested and growing over time. Compare administration fees, investment fees, and any other charges.
- Consistent returns over the past five to ten years on the fund’s website or through financial comparison websites.
- Insurance coverage that meets your needs and is cost-effective.
- A range of investment options tailored to different levels of risk tolerance and financial goals.
- Positive customer service reviews and ratings. Good support will make managing your superannuation easier and more effective.
What super funds should you consider? The most popular in Australia are
- Hostplus
- Aware Super
- Australian Retirement Trust
- Virgin Money Super
- AustralianSuper
Maximising Your Super in the Hospitality Industry
Boosting your hospitality superannuation savings is a no-brainer for a more comfortable retirement. Here are some strategies to help.
- Salary sacrificing: Arrange with your employer to contribute a portion of your pre-tax salary directly into your super fund. Such salary sacrificing will also reduce your taxable income, meaning you’ll pay less tax as a bonus!
- Voluntary contributions: Set aside a portion of any extra income, such as tips or bonuses, into your super. Small, regular contributions add up over time.
- Government co-contributions: If you earn below a certain threshold, the government may match your voluntary super contributions up to a specific limit.
- Consolidate super accounts: If you have multiple super accounts from different jobs, consolidating them into a single account can save on fees and simplify management. Compare funds and choose the one with the best benefits. Many super funds offer easy online consolidation tools.
- Regularly review your fund: Keep an eye on your fund’s performance and fees. Switching to a better-performing fund can make a significant difference over time.
- Check for lost super: Use the Australian Taxation Office’s online services to find and reclaim any lost or unclaimed super.
- Seek professional advice: Consult an accountant or bookkeeper specialising in superannuation for advice tailored to your financial situation. They can help you navigate complex super rules, optimise your contributions, and maximise your benefits.
Secure Your Future With GeekBooks: Get Expert Hospitality Superannuation Advice
Choosing the best super fund can guarantee that your hard work today pays off in the future.
We hope the information we’ve presented will help you make an informed choice!
If you need personalised hospitality superannuation advice, including support managing your fund for maximum returns, GeekBooks is here to help.
Simply complete this online booking form or call 02 9158 3591 to connect with our superannuation experts today.