Policy U-turn opens door for Aussie teenagers to get massive superannuation boost

Hundreds of thousands of young Australians are one step closer to earning superannuation on every dollar they make, after the Labor Party adopted super for under-18s into its national policy platform.

Speaking at the 50th ALP National Conference in Adelaide, Prime Minister Anthony Albanese delivered a suite of workplace commitments – including scrapping the 30-hour weekly threshold that locks teenagers out of superannuation guarantee payouts.

While the policy shift is not yet law, the formal platform commitment could clear the way for the Albanese government to introduce legislation – reversing Labor’s stance from just last month, when it joined the Coalition to vote down a Greens motion on the issue in parliament.

Under current settings, employers are only required to pay superannuation to workers under 18 if they work more than 30 hours in a single week.

A Senate inquiry into payday superannuation amendments earlier this year found that companies known for hiring young workers like McDonald’s, Hungry Jack’s, Coles, Woolworths, Kmart, Target and Chemist Warehouse do not pay workers under 18 super regardless of hours worked.

Crossbench MPs and unions have long pushed to close the loophole, noting that 93 per cent of under-18s work fewer than 30 hours due to school and study – costing an estimated 515,000 young workers $405 million in lost contributions each year.

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According to Rest Super, removing the threshold would benefit a typical 15-year-old by roughly $3400 in super by their 18th birthday – compounding into an extra $18,100 by the time they reach retirement.

“Rest considers the exclusion outlined in the regulations for under-18 workers is discriminatory, arbitrary and outdated,” Rest Super wrote in a submission to the inquiry.

The Coalition and small businesses have previously warned against rushing into reform, arguing that mandating super for teenagers could impose heavy new costs on businesses that rely on large casual workforces.