Rest and the Super Members Council have urged the government to act on cross-parliamentary support for changes that would extend compulsory superannuation to under-18 workers, arguing the current system is leaving younger and lower-paid workers behind.
The majority report from the Senate Economics Legislation Committee, released by government and Coalition senators, expressed in-principle support for paying super on every dollar earned, including extending compulsory super contributions to under-18 workers regardless of how many hours they work.
The Australian Greens’ dissenting report also supported the change and called for it to happen immediately.
Rest general manager, public policy and advocacy, Enrico Burgio, said the cross-parliamentary support marked a pivotal moment and urged the government and Parliament to build on the momentum.
“Because of an outdated requirement to work 30 hours per week, most under-18 workers are missing out on compulsory super contributions. It’s time for this to change,” Burgio said.
“This rule is getting in the way of our young Rest members building a fairer and more equitable retirement. Our analysis has shown that scrapping the rule could add thousands to their retirement balances.
“We wholeheartedly welcome this strong cross-parliamentary support for paying superannuation on every dollar earned and extending the Superannuation Guarantee to all under-18 workers. We urge the Government to now outline a plan to implement this change.
“It’s important the potential impact on employers is thoroughly considered and the change is implemented through a multi-year, staged rollout. We agree that the change will require careful consultation.”
Workers under the age of 18 are currently only eligible for compulsory Superannuation Guarantee payments if they work more than 30 hours per week for the same employer, although Rest said some employers already voluntarily pay super to younger workers.
Rest, which made the change its priority recommendation in its pre-budget submission to Treasury this year, said its analysis showed a typical 15-year-old Rest member could receive an estimated $3,400 extra in super by their 18th birthday if the rule was scrapped.
The fund said the change could also add an estimated $18,100 to that member’s retirement balance in today’s dollars.
The Super Members Council (SMC) also welcomed the Senate Economics Legislation Committee’s payday super regulations inquiry final report, which it said strongly backed the start of payday super from 1 July and declared in-principle, cross-party support to close the loophole affecting under-18 workers.
The SMC’s analysis showed the denial of super to under-18s working less than 30 hours a week for one employer cost 515,000 teenage workers nationally $405 million this financial year.
Under current rules, the council said many younger workers and some domestic workers could still miss out on super contributions, despite doing the same work as 17 million other Australians who are fully covered.
The council has also called for the exclusion to be removed for domestic workers who do less than 30 hours a week for one employer in private homes, including cleaners, housekeepers and nannies.
Its analysis showed around 37,000 domestic workers missed out on super in 2026–27, with women making up 86 per cent of the affected low-paid workers.
On average, the council said each of these workers missed out on almost $4,000 a year in super contributions, amounting to nearly $150 million nationwide. Women missed out on about $126 million in a single year alone.
A recent report by the council found removing the 30-hour threshold would help close the gender super gap, with the current age-based minimum-hours rule meaning many teenage workers, particularly young women more likely to work part-time, are not paid super on their wages.
The council said women currently retire with 25 per cent less super than men, and that gap could begin from their first day at work.
Its report found that if all under-18s were guaranteed super, a typical teenage girl could have nearly $2,500 more in super by age 18, which could grow to $11,000 more by retirement with investment returns.
“Universal coverage of super is critical to building a fair and effective retirement system, particularly for workers who are already at higher risk of being left behind — including young people, women, and those in insecure or part-time work,” the SMC said.
“When something is outdated, you fix it. Fixing these outdated laws would help close the gender super gap and boost the retirement savings of thousands of hardworking Australians
“It doesn’t pass the pub test that some workers can still miss out on super because of their age or the type of work they do — that’s a gap that should be closed.”
“The government must get on with fixing this gap as soon as possible after payday super laws are implemented.”
