Labor commits to compulsory super for under-18 workers

Labor has unanimously supported extending superannuation to under-18 Australian workers.

Delegates at Labor's National Conference voted to include a policy to extend compulsory super regardless of the hours of worked, in its National Platform, a formal policy document that states the party's beliefs, values and program for government.

Currently, workers under the age of 18 are only eligible for compulsory Superannuation Guarantee payments from their employer if they work more than 30 hours per week for that employer.

"If you're working, you should get super, whether you're 16 or 60," said the Association of Superannuation Fund of Australia (ASFA) chief executive Mary Delahunty said.

"Extending the super guarantee to workers under the age of 18 could add thousands to their savings at retirement, and we welcome the commitment from the Australian Labor Party (ALP) to add this to their national platform."

Rest chief member officer Simone Van Veen said the inclusion of this reform in Labor's policy platform is an encouraging step towards more equitable retirement outcomes for the fund's younger members.

"Right now, a 15-year-old and an 18-year-old could work side by side in the same job, but only one of them would be entitled to compulsory super. In fact, most under-18 workers currently miss out on compulsory super contributions," Van Veen said.

"This doesn't make sense and needs to change. We welcome the Labor Party adding this reform to their policy platform and encourage the government to take the next step and outline a plan to implement this change."

Rest's analysis has shown that a typical 15-year-old super member could benefit from an estimated $3400 extra in super by their 18th birthday, and an estimated $18,100 in additional super by retirement if the rule was changed.

Rest made a priority recommendation on the policy in its pre-budget submission to Treasury.

Van Veen added it is essential the change is implemented through a multi-year, staged rollout after understanding the potential impact on employers.