What Hair Stylists need to know about Superannuation

Would you say no to an extra 10% on top of your wages every week? Of course not!

Well, right now 1 in 3 Australians are actually missing out on their full superannuation entitlements – when you’re ready to retire, this can mean huge amounts of money.

Today, we’re looking at your rights on superannuation, how to claim it, and what hair stylists can do if their super is lost or stolen.

How does Superannuation work?

Superannuation was fought for – and won! – by the union movement in the 1980’s and 1990’s. Since 1992, the Superannuation Guarantee makes it the law that your employer must put in an extra percentage on top of your wages into your super fund, whether you’re on the Hair and Beauty Award, have an individual contract, or are part of an agreement.

Right now, the superannuation guarantee is 10% – so for every $1000 you earn, $100 should be going into your super fund.

Once this money is put into your super account, you can’t take it out until you reach retirement age, but you do have control over what fund you choose, and often what kind of investments you would like your money to go into.

How often should it be paid?

Your super should be paid at a minimum every three months, but many employers choose to do it with every pay cycle. Your contribution should be included on your payslip, and the fund it’s being paid into – but keep in mind this is not 100% proof that you’re being paid!

So how can I check my super balance?

If you go into your MyGov account, click ‘Australian Tax Office’ under your services, and once you’re on the ATO website, select ‘super’.  This will show you all the different funds open under your name. The information on the ATO website is updated every financial year, so you can see how much you accumulate every 12 months.

To check your balance, find a payslip with your end-of-year payment summary. Your super contributions should be 10% of that final number. If it was before July 2021, then your superannuation guarantee was 9.5%

If you want more recent information on your super, then you’ll need to log into your super fund website. The fund should be listed on your payslip, but if it’s not, get in touch with your employer (they are lawfully required to tell you what fund your money is going into).

Generally, you can set up your own super account online with your tax file number, identification, email and phone number.

We recommend checking your super account at least every three months, to make sure your payments are coming through. Please don’t trust your payslip, as we’ve had many members think they were being paid – but had a nasty shock when they checked their super accounts!

What if my super is in another account? 

If you’re a hair stylist who’s worked in a few different salons, chances are you’ll have multiple superannuation accounts. Some employers (or their accountants) will just set you up with a new fund if you don’t supply details of an existing one.

You can find all your superannuation funds on your MyGov account, and choose to consolidate your accounts into one. Remember, multiple funds mean more fees, which can eat into your nest egg.

HSA is a really proud partner of AustralianSuper, the largest industry super fund in Australia. Unlike a lot of the big funds run by banks, all the profits go to members, not business owners and shareholders – and AustralianSuper is consistently of of the best-performing super funds in the market. You can check out more details here! 

Help, I can’t find my super!

 You might be one of the 30% of workers who have some of their superannuation stolen each year. Unfortunately, wage theft is way more common than people realise, and businesses are stealing $6 billion a year in superannuation from workers.

There are avenues you can take, like contacting your employer or lodging a claim with the ATO, which is where Hair Stylists Australia can help you out!

We have heaps of experienced tracking down stolen superannuation from employers and can put together a claim. It’s one of our many benefits of being a member. Join today and get advice and support so you can reclaim your rights at work!