The Australian Labor Party has committed to a significant change in superannuation policy, which will require employers to pay retirement contributions to all workers under 18, irrespective of their weekly hours. The decision was adopted by Labor's national conference.
Previously, employees under 18 only accrued superannuation if they worked more than 30 hours per week. The new policy ensures that 'all workers, including those under 18 and regardless of how they are engaged, can accumulate superannuation on every dollar earned.'
With the current Super Guarantee rate set at 12 percent, millions of Australian workers are anticipated to accumulate substantially more in their retirement savings over their careers as a result of this policy shift. The change is expected to impact a broad segment of the young workforce and is a key commitment from the Labor party.