Australia’s super system was designed to be universal to ensure people share in the benefits of long‑term investment and retire with greater security. But one little‑known rule still undermines that promise for tens of thousands of workers.
Under outdated regulations, cleaners, housekeepers and nannies employed in private homes are excluded from guaranteed super if they work fewer than 30 hours a week for a single employer. The result is a structural loophole that disproportionately affects women and strips retirement savings from people doing essential, paid work.
SMC analysis shows the scale of the impact. Around 37,000 domestic workers will miss out on super contributions in 2026–27 alone, costing them nearly $150 million in retirement savings in just one year. Women account for 86% of those affected, with around $126 million of the lost super borne by women. On average, each worker misses out on almost $4,000 a year.
This gap compounds over time. Modelling shows a typical part‑time domestic cleaner could retire with more than $130,000 less in super because of this exclusion – reducing retirement income and increasing reliance on the Age Pension.
The original justification for the rule no longer stacks up. The 30‑hour threshold was introduced decades ago to avoid the creation of low‑balance super accounts. At the time, super contribution rates were modest and there were limited protections for low-balance accounts from fees and charges, creating a risk small balances would be eroded rather than grow over time.
But modern consumer protections now limit fees on low‑balance accounts, removing the very risk the exclusion was designed to address. What remains is a rule that treats some workers differently from others, without a defensible policy rationale.
This issue sits squarely in view of the Senate, with the Economics Legislation Committee examining the laws underpinning the exclusion. The timing matters. Australia is already moving to strengthen super through reforms like payday super, aimed at improving fairness and retirement outcomes. Leaving this loophole untouched undermines these historic reforms.
Super works best when it is simple, universal and fair. Cleaners, housekeepers and nannies perform vital work that supports households and the broader economy. Ensuring they receive the same retirement contributions as other workers is not radical reform – it is a necessary update to keep Australia’s super system aligned with its founding principles.
