'Outdated' law costs teen workers $411m in superannuation, modelling shows
Workers aged under 18 who work less than 30 hours a week for one employer do not currently get paid superannuation.
Young Australian workers are losing $411 million in superannuation annually due to a law excluding under-18s who work fewer than 30 hours weekly, according to modelling by the Super Members Council. Victoria alone faces a loss of $115 million in unpaid superannuation, the highest among states. The Greens are leading the federal effort to amend the law.
Approximately 156,000 teen workers in Victoria will miss out on an average of $735 in super by 2026-27, totaling $115 million. Super Members Council CEO Misha Schubert emphasized that this is the highest number of any state. Teen workers in Victoria are denied a basic workplace right that 17 million other workers enjoy. The council found that 91% of under-18s work fewer than 30 hours weekly, and the average teenage, part-time worker could miss out on $2,500 in super contributions by age 18, potentially amounting to $11,000 by retirement.
The council urges the law's scrapping, citing its unfairness and lack of alignment with community expectations. Many teenagers work in retail, hospitality, care, and community services, deserving real superannuation. The Greens have introduced an amendment bill and secured a Senate inquiry into the issue. Federal Treasurer Jim Chalmers has expressed support for reform but hasn't made legislative moves yet.
Labor delegates voted to include a policy extending compulsory superannuation payments to under-18s. However, the Australian Chamber of Commerce and Industry raised concerns, stating that reform would have severe consequences for small businesses.
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