Calls to expand super payments for younger workers regardless of hours worked

Teenagers should be paid superannuation on top of their wages regardless of how many hours they work, one of Australia’s largest funds urges.

Modelling by the Super Members Council of Australia released on Tuesday shows the average worker under 18 would have $10,000 more in their balance upon retirement, should they have super paid on their wages.

Under current laws, underage workers are only paid super by their employer if they work more than 30 hours per week.

But chief executive of super fund Rest, Vicki Doyle, said universal superannuation should be extended to all employees regardless of age.

“This law is simply unfair and needs to change. Every worker under the age of 18 deserves to earn super no matter how many hours they work,” she said.

“It’s essential that all young workers can have a fair start with super and can receive the benefit of compounding returns from day one of their working life.”

It’s estimated more than 90 per cent of workers under 18 work unless than 30 hours per week, making them ineligible for super payments..

It comes after the Australian Council of Trade Unions in October called for junior wages for workers under 21 to be scrapped, instead urging for adult wages to apply.

The campaign for younger workers also include calls for superannuation to be paid for workers for every dollar earned, including those under 18.

Extra superannuation was crucial for many young workers starting their first job in a casual or part-time role, Ms Doyle said.

“A consistent approach to paying super on every dollar will help drive better engagement from a young age, which in turn supports better future outcomes,” she said.

It was likely there would be resistance from small business owners to the calls to expand the payments, the super fund chief executive said, and further consultation was needed with industries to make the reforms work.

“While this change will make super fairer and financially benefit countless young workers, it is also likely to have an impact on employers, particularly small and medium businesses, who employ part-time or casual workers,” she said.

“A thorough consultation process to consider this impact is essential, as is working with employers on implementing this change.”