Treasurer opens door to massive super boost for half a million Aussies

Some of Australia’s biggest companies have been singled out as the federal government considers a Greens-led push to expand superannuation to all workers under the age of 18.

The minor party moved a motion to adjust the current settings – which force employers to pay super to teenagers who work at least 30 hours a week – to include all under-18s regardless of how many hours they have worked on Tuesday.

The Greens argued it is unfair not to pay super to the estimated 515,000 young workers who don’t work the 30-hour minimum due to obligations like school and study.

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The motion was knocked down by both Labor and the Coalition on Wednesday.

Greens Senator and spokesperson for workplace relations Barbara Pocock said both parties were robbing teenagers of millions of dollars.

“Labor and the Coalition teamed up in the parliament to vote against teenage workers getting super and to pump the profits of Coles, Woolies and Maccas,” she said in a statement.

Treasurer Jim Chalmers has, however, left the door open to the change but said he is focusing on other super measures – like payday super which came into effect on Wednesday – for now.

“We’ve had this raised with us, and I’ve been engaging with young people on it because I think it’s a really important issue,” he told reporters on Tuesday.

The Coalition has raised concerns about the lack of understanding about the impact of the change.

“Obviously, there are implications for employers, and we want to understand all of this. You can’t just do these things on the fly,” retiring Liberal Senator Jono Duniam told Sky News.

“There are costs to employers, particularly when you’ve got a huge casual and young workforce.

“Let’s understand what impact that would have on the economy before we rush off into another dirty dodgy deal with the Greens.”

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.

The Super Members Council have found workers under 18 have lost out on an estimated $405 million in super contributions in the last financial year alone.

Rest Super estimated a typical 15-year-old would benefit from an estimated $3400 in super by their 18th birthday and $18,1000 in additional super by retirement if the current system is adjusted.

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“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 overwhelming majority (93 per cent) of under-18-year-old workers usually workless than 30 hours per week in all jobs, meaning these workers are missing out on compulsory legislated super guarantee contributions.”