Superannuation: Super important for tourism businesses

In the tourism and hospitality industry, where seasonal work, casual employment, and high staff turnover are common, ensuring superannuation obligations are met correctly and on time is crucial.

The Australian Taxation Office (ATO) is increasing its focus on compliance, and the consequences of non-compliance can significantly impact your business operations and reputation. This is especially important for small business owners and tour operators, who often face additional challenges in managing super contributions.

Superannuation is not just an employer obligation—it plays a vital role in supporting employees' long-term financial security. By ensuring correct and timely payments, businesses contribute to a stable workforce, which is essential in maintaining the high service standards expected in the hospitality and tourism industry. Employees who feel financially secure are more likely to remain engaged, reducing staff turnover and improving service quality.

The Basics

Superannuation Guarantee (SG) is currently 11.5% and will rise again to 12% from 1st July 2025. Most payroll software update these rates automatically, but tourism operators must ensure that super is being calculated correctly for all relevant pay items, such as ordinary hours and annual leave. Given the unique workforce structure in tourism, it’s vital to review these pay items regularly, particularly for casual and seasonal employees who make up a large proportion of the industry. Payroll data accuracy is crucial in avoiding compliance risks.

The Payment

Tourism businesses, especially those in hospitality and tourism, adventure tourism, and seasonal attractions, often experience fluctuating cash flow, particularly during peak season. Currently, SG liabilities must be paid by the 28th day of the month following each quarter, but take note, change is coming. Late payments can lead to ATO penalties, including admin fees and interest. Given the often fast-paced nature of Australian businesses, missing these deadlines can be easy—but costly. The ATO is placing increased scrutiny on late payments, so ensuring timely super contributions is more important than ever.

Managing superannuation obligations effectively requires careful financial planning. Businesses should consider setting aside funds regularly to avoid cash flow disruptions when payments are due. Employers can also seek advice from accountants or financial experts to develop strategies for compliance without negatively impacting their bottom line. By taking a proactive approach, businesses can prevent financial stress and focus on providing exceptional experiences for tourists.

The Changes

From 1st July 2026, “Payday Super” will take effect, requiring businesses to pay employee superannuation with every pay cycle. This change will be particularly significant for tour operators and small businesses that pay staff weekly or fortnightly, as it may impact short-term cash flow. Businesses should start planning now to assess how this shift may affect their financial planning and payroll processes. For those in seasonal tourism, adjusting to more frequent super payments will require careful budgeting, especially during off-peak periods.

What Else?

Beyond superannuation, new Wage Theft Laws have taken effect on 1st January 2025, criminalising intentional underpayment of wages, including superannuation. This legislation underscores the importance of compliance, especially for tourism businesses that often employ casual and transient workers. Ensuring that payroll processes are robust and error-free is now a legal necessity, not just a best practice. Failure to comply can lead to negative impacts on your business’s reputation and finances.

Tourism is about creating memorable experiences for visitors, and that starts with taking care of the people who make those experiences happen—your employees. Staying on top of superannuation obligations ensures your workforce remains engaged, your business stays compliant, and you avoid unnecessary penalties. In an industry driven by customer satisfaction, a well-supported and financially secure team is key to long-term success. Additionally, supporting employees helps preserve local culture and maintain Australia’s reputation as a top tourism destination for global travellers.

Superannuation is not just an administrative requirement; it is an investment in the stability and longevity of the tourism industry. By fostering a responsible and supportive work environment, businesses can attract and retain skilled employees, ensuring that Australia remains a world-class tourism destination. Whether you operate in a bustling city or a remote tourist destination, staying informed and proactive with super contributions will benefit both your employees and your business.
 

 FOR MORE INFORMATION

Contact your local tourism adviser today for guidance on managing superannuation compliance effectively. 
This is a great opportunity for Australian tourism businesses to stay ahead of regulatory changes and strengthen their workforce.