Teenage workers estimated to miss out on $405m in super in 25/26
New research from the Super Members Council (SMC) has confirmed Australian under-18 workers who are not eligible to earn superannuation will miss out on an estimated $405 million in retirement savings in the 2025/26 financial year.
The research was released off the back of modelling conducted by the SMC late last year, which intensified calls to dump the “outdated” law that excludes workers under the age of 18 from earning guaranteed superannuation unless they work more than 30 hours a week for one employer.
According to the latest analysis, 119,000 under-18 workers just based in NSW will be excluded from earning approximately $815 each in superannuation contributions this financial year – amounting to a total of $98 million and 24.1 per cent of the national “shortchange”.
The report, released in December last year, also indicated that scrapping the law and the 30-hour threshold would support the bridging of the gender super gap which currently stands at 25 per cent.
With the threshold in place, teenage women who are more likely to work part-time in retail and community service jobs are not yet paid super on their earnings and are missing out on $2,500 in super by the time they turn 18 and $11,000 by the time they retire.
Teenage boys were found to more likely take on a trade or labour work with full-time hours and apprenticeships offering guaranteed super.
SMC chief executive, Misha Schubert, urged the government to allow all workers the opportunity to earn superannuation.
“Under-18 workers in New South Wales will be shortchanged $98 million in retirement savings this year because of this outdated rule.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.
“Equal opportunity shouldn’t start at 18. Let’s give young workers a better future and pay super to all under-18s.”
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