Under-18s super carve-out widens the gender gap, costs young women $11,000 by retirement

The Super Members Council will push to scrap an outdated law that denies super to most under-18 workers, after new analysis shows it widens the gender gap and can cost women up to $11,000 at retirement.

Under current rules, workers under the age of 18 are only legally guaranteed super if they work more than 30 hours a week for one employer.

The outdated exclusion was originally made to prevent fees eroding low-balance super accounts, but that reason no longer stacks up now there are fee protections on small super balances.

The new analysis comes as a Pyxis survey found 73% of Australians support changing the law so workers get paid super at all ages. Only 7% of Australians do not support such a change.

Scrapping the 30-hour threshold would make super fairer and help close the gender super gap. It would also make legal compliance easier for employers, and smooth the start to work for teenagers.

The current age-based minimum hours rule means most teenage workers, especially young women who are more likely to work part-time, are not yet paid super on their wages. Women currently retire with 25 per cent less super than men, and the gender super gap can start from their very first day at work.

The Council’s new report shows:

• If all under-18s were guaranteed super, a typical teenage girl could have nearly $2,500 more in her super by age 18, which could grow into $11,000 more by retirement with investment returns.
• Scrapping the outdated rule could mean half a million more young Australian workers – 515,000 in 2025/26 - would start their working lives getting paid super from day one.
• While teenage girls are 55 per cent of all under-18 workers, they are only 35 per cent of the teenage workforce currently guaranteed super due to the 30-hour rule.

Teen girls are more likely to work in retail and community service jobs and typically work fewer hours than the current 30-hour super threshold for under-18s.

Teen boys under 18 are more likely to work as tradies and labourers, where full-time hours and apprenticeships are common, giving them guaranteed super.

With recent changes to pay superannuation on Commonwealth Parental Leave Pay, a shift to payday super from 1 July 2026, and a pledge to boost to the Low-Income Super Tax Offset (LISTO), the Australian Government has made big strides to start to close the gender super gap.

Its next step should be removing this outdated law that denies most young women starting out in the workforce a guaranteed right to super. 

“It’s simply not fair that young women today are missing out on thousands of dollars in retirement savings because of this outdated rule. The super gap starts from day one of men and women’s working lives – and that needs to be fixed now,” said Super Members Council CEO Misha Schubert.

“Ensuring all under-18 workers are paid super will be another big stride forward to help close the gender gap and guarantee every young Australian a super start to work.”