Teens missing out on summer work super due to ‘discriminatory rule’

According to a new report, a majority of Australian teenagers who have taken on a summer job are missing out on superannuation contributions, undercutting them for the future.

A report from the Super Members Council (SMC) has found that of the thousands of young Australians working summer holiday jobs, very few are making up enough hours to earn superannuation contributions.

As it stands, under-18 workers don’t receive super contributions unless they work more than 30 hours a week due to what the SMC has labelled as an outdated and discriminatory rule.

The report showed that about nine in 10 teenagers do not reach the 30-hour work threshold each week, which the SMC calculated is denying about 505,000 teenage workers about $368 million in total super contributions a year.

SMC deputy chief executive Georgia Brumby called on the Australian government to abolish the “outdated” 30-hour threshold, which would guarantee all young Australian workers get a super start to work.

“Let’s not leave our teen workers high and dry this summer. Change the law so they can earn super, no matter how many hours they work,” said Brumby.

“Early career contributions are some of the most valuable by retirement. Every Australian worker, at every age, deserves the right to set themselves on the path to a dignified retirement.”

Other analysis from the new report found that a typical teenager who worked for at least two years would have acquired around $2,200 in their super by the time they reached 18 years of age. SMC found that with this added savings, they would have $10,000 more when they reach retirement age.

“Australians strongly support universal super – and know it’s a workplace right. Super should be for everyone, paid from the first hour of your first job. Fixing this outdated exclusion is overdue,” said Brumby.

SMC research shows that 85 per cent of Australians think anyone who does paid work should get super contributions.

The SMC claims that removing the current 30-hour threshold would make it easier for employers to track the hours of their under-18 employees. Although the change will no doubt impact businesses, SMC believes the change must be made.

“This is a modest investment for our children’s future – adding just 0.03 per cent to total employee costs. SMC supports a phased transition and looks forward to working with employer groups to bring about this key reform in a way that enables a smooth implementation for business,” said Brumby.