A Super Start
Empowering Australia’s Young Workforce
Australia’s under-18 workforce could benefit from an additional $10,000 in retirement savings if outdated rules excluding them from superannuation contributions are abolished, according to a new report by the Super Members Council (SMC).
Currently, under-18 workers must clock more than 30 hours a week to qualify for compulsory super contributions. This complex and discriminatory rule denies approximately 505,000 teenage workers $368 million annually, an average of $730 each.
The report highlights that:
- A typical teenager working two years could accumulate $2,200 in super contributions, setting them on a path to long-term financial security
- By retirement, these savings would grow to an additional $10,000, leveraging the power of compound interest
- The report calls for removing the 30-hour threshold, a move that simplifies employer administration while promoting equity.
SMC CEO Misha Schubert emphasised the importance of this reform:
“Every Australian worker deserves the opportunity to build a dignified retirement, starting with their first job. Extending super to under-18s ensures their savings grow from day one, simplifying compliance for businesses and delivering a fairer system.”
The report recommends a phased implementation to ease the transition for businesses, citing similar adjustments for other worker categories in 2022.
This initiative aligns with strong public support, as 85% of Australians believe all paid workers deserve super contributions. The SMC hopes to collaborate with employer groups to achieve this reform, ensuring Australia’s youth can fully benefit from the nation’s superannuation system.