This week the Super Members Council launched a report exposing an outdated rule that means the gender super gap starts from day one of a woman’s working life. 

Under current law, workers under 18 are only guaranteed super if they work more than 30 hours a week for one employer. This carve-out was originally designed to prevent fees eroding small balances, but that reason no longer stacks up now there are fee protections on small super balances. 

The impact is stark. Most teenage workers, particularly young women who are more likely to work part-time in retail and community services, miss out on super contributions. While teenage girls make up 55% of all under-18 workers, they represent only 35% of those currently guaranteed super due to the 30-hour rule.  

This means the gender super gap starts from day one, with women retiring on average with 25% less super than men.  

Our analysis shows that if all under-18s were guaranteed super, a typical teenage girl could have nearly $2,500 more in her account by age 18, growing to $11,000 by retirement thanks to investment returns. Scrapping the outdated rule could mean half a million more young Australians start their working lives with super from day one.  

Community support for change is overwhelming. A recent Pyxis survey found 73% of Australians back reform so all workers receive super, regardless of age. Only 7% oppose it.  

Removing the carve-out would not only make super fairer and help close the gender gap, but also simplify compliance for employers and smooth the transition to work for teenagers.  

With recent Government moves to pay super on parental leave and boost the Low-Income Super Tax Offset, momentum is building to close the gender gap. Its next step should be removing this outdated law that denies most young women starting out in the workforce a guaranteed right to super.