Australian Treasurer Jim Chalmers has indicated the government is open to discussions about extending superannuation, or retirement savings, to workers under the age of 18. The comments come as the Greens political party campaigns to abolish the current threshold that requires individuals under 18 to work more than 30 hours a week to qualify for contributions.
The federal government's 'Payday Super' reforms are set to commence on July 1, mandating employers to pay superannuation contributions concurrently with wages, moving away from the previous quarterly payment system. Under these reforms, employers will be required to contribute 12 percent of eligible workers' earnings to their superannuation accounts, as part of the Superannuation Guarantee.
Currently, employees under 18 are only eligible for superannuation if they meet the 30-hour work week condition, regardless of their income. The Greens are advocating for the removal of this 30-hour rule entirely, proposing that all workers under 18 should receive superannuation contributions irrespective of their weekly working hours.
Speaking ahead of the 'Payday Super' reforms, Chalmers stated that the government is actively engaged with proposals to broaden superannuation coverage. However, he stopped short of fully endorsing the Greens' specific proposal, emphasizing that the immediate government priority is the implementation of the upcoming 'Payday Super' changes. "We're engaging on all these sorts of issues. We're always looking for ways to improve the system," Chalmers told Sky News. He also noted that he had recently met with a delegation of young workers to discuss this matter.
The Albanese government asserts that its existing reforms are designed to curb underpayment of wages and significantly enhance retirement balances, particularly for lower-paid and younger employees. Despite this, the Greens have challenged the government's decision to maintain the under-18 threshold, introducing a partial disallowance motion in the Senate aimed at repealing the 30-hour rule. This motion is anticipated to be debated and voted on in the coming week.
Greens spokesperson for workplace relations, Senator Barbara Pocock, argued that the current system effectively excludes a large number of young workers, many of whom balance employment with their studies. "The kids are not alright. The cost of everything has gone up but wages haven't kept up with inflation," Pocock stated. She contends that the exclusion of young workers from superannuation is costing them an estimated $405 million in contributions for the 2025-26 financial year alone, affecting approximately 515,000 young workers. Pocock further elaborated that the 30-hour threshold disproportionately affects students, as most are unable to fulfill this requirement due to their academic commitments. "The majority of young people, 93 per cent, work fewer than 30 hours a week because of school and study commitments, meaning they miss out on super. That's unfair," she said.
Pocock also highlighted that younger workers performing the same duties as adults should receive equal employment entitlements, including superannuation. "A 16‑year‑old stacking shelves at Coles or Woolworths or flipping burgers at McDonald's earns every dollar of their wage the same way an adult worker does. Their labour has value," she stated. "Whether they're 16 or 60 years old, every worker deserves super."