Under-18s super carve-out sees Queensland teenagers miss out on $104 million in super contributions

The Super Members Council is pushing to scrap an outdated law that denies super to most under-18 workers, after new analysis shows it will shortchange teenagers in Queensland $104 million in 2025/26.

The research shows 127,000 under-18 workers in QLD will miss out on an average of $820 in super contributions this year, and about 515,000 teen workers nationally will be excluded from a combined $405 million.

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The outdated exclusion was originally made to prevent fees eroding low-balance super accounts, but that reason no longer stacks up now there are fee protections on small super balances.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

A recent report by the Council also found axing the 30-hour threshold would help close the gender super gap.

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 gap can start from their very first day at work.

The report found that 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.

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.

Scrapping the outdated exclusion would also make legal compliance easier for employers and smooth the start to work for teenagers.

The change has a minimal aggregate impact on the cost to business at about 0.03% of national payroll. The Council supports a phased approach to minimise and manage the impact on business. 

The Council’s CEO Misha Schubert called on the Australian Government to abolish the 30-hour threshold and guarantee all young Australian workers get a super start to work.

“Under-18 workers in Queensland will be shortchanged $104 million in retirement savings this year because of this outdated rule. It’s time to fix it,” she said.

“The sooner you get super, the more it’ll look after you. Missing out on super before 18 can cost some young people $11,000 by retirement.”

“A fair go shouldn’t be denied until you turn 18. Let’s give young workers a better future and pay super to all under-18s.”