Senate Economics Legislation Committee inquiry into the Superannuation Legislation Amendment (Fair Super for Young Workers) Bill 2026
The Super Members Council (SMC) thanks the Senate Economics Legislation Committee for the opportunity to make a submission to its inquiry into the Superannuation Legislation Amendment (Fair Super for Young Workers) Bill 2026.
In summary:
SMC strongly supports removing the discriminatory rule that excludes under 18 workers from the Super Guarantee (SG) unless they work more than 30 hours a week for one employer.
Super’s success is built on the fundamental principles of preservation, universality and compulsion, but some Australians in paid work are still missing out on super due to an outdated exclusion.
The exclusion of part-time under 18 workers dates back to when the super contribution rate was just 3% and the argument was made that small super balances would be eroded by fees.
But with the SG rate now at 12%, and a fee cap enshrined in law since 2019, those arguments no longer stack up – this rule now just discriminates against young workers solely based on their age.
SMC analysis reveals over half a million (530,000) young Australian workers are not receiving the same super entitlements as their workplace colleagues, missing out on $411 million in super a year.
The earliest contributions matter the most, as they have the most time to grow with the power of compound returns. A typical under-18 worker would have $2,500 more super by the time they turn 18, growing to $11,000 (today’s dollars) by the time they reach retirement age, by ending this exclusion.
This outdated rule is also perpetuating the gender super gap, which currently sees women retire with a quarter less super than men. Young women are the most harmed because they are more likely to work part-time. They make up 52% of under 18 workers, but only 31% of those who work more than 30 hours a week. Our analysis shows more under-18 men work as labourers or technicians and tradies – jobs where full-time roles/apprenticeships are much more prevalent.
SMC acknowledges that this change will involve a cost for businesses. The total impact is small, representing an increase of 0.03% on the national payroll. However, due to the roles young people work in, some industries will have higher costs, particularly hospitality and retail businesses.
SMC recommends the Committee consult with employers on a transition approach to assist businesses to prepare for the change.
