“The super system has improved the financial position for so many Australian workers during the past three decades. However, despite its successes, we know not every worker gets a fair start with their super”

By Vicki Doyle,
Chief Executive Officer, Rest

Currently, workers under the age of 18 are only eligible for compulsory Superannuation Guarantee payments from their employer if they work more than 30 hours per week. Some employers already voluntarily pay this, but this rule prevents most under-18 workers from earning super.

Removing this rule will have a significant positive impact

More than 90% of under-18 workers work less than 30 hours per week. Nearly three quarters of them work in the accommodation and food services, and retail trade industries.¹

Modelling from the Super Member’s Council of Australia shows that the change could have a significant financial impact for young Australians. The average under-18-year-old could potentially see their age-67 retirement balance boosted by more than $10,000 in today’s dollars. It would positively benefit around 375,000 young workers each year.²

Most Australians think this rule is unfair

Research conducted for Rest³ earlier this year found that 77% of Australians think the rule is unfair. While 82% think that the law should be changed so that young Australian workers under the age of 18 earn superannuation regardless of how many hours they work.

The earlier the start, the better

Paying super on every dollar would mean that every young Australian can engage with and benefit from our super system from day one.

Rest is the first super fund for countless Australians. We currently represent around 1 million members aged under 30.

We strongly believe that the earlier that members engage with their super, the more opportunities they have to take steps that can have a real benefit to their financial future.

Fairer for all workers

We think that it is simple: every worker under the age of 18 should earn super regardless of how many hours they work.

It’s time for Rest and the SDA, and super industry and employers more broadly, to work together with the Australian Government to bring this important change into reality in the most sensible way.

* HILDA Survey Waves 17 to 21, referred to in T Samardzija, B Bastian, T Mai, Super start to work: Extending the Super Guarantee to all under-18-year-olds, Industry Super Australia, 2023, pages 7 and 10.

** Super start to work: Extending the Super Guarantee to all under-18-year-olds, Industry Super Australia, 2024, page 12.

*** Research conducted by CRNRSTONE Australia, on behalf of Rest, via an online survey of 1,000 Australians aged 16-70 between Tuesday 30 April to Wednesday 8 May 2024.