Senate report backs removal 30-hour work threshold for SG

A Senate Economics Legislation Committee report released this week expressed in principle support for paying super on every dollar earned, including removing the existing 30 hour per week threshold that currently applies to under 18 workers.

Under current rules, employees under 18 are only entitled to compulsory Superannuation Guarantee contributions if they work more than 30 hours a week for an employer.

Rest general manager of public policy and advocacy Enrico Burgio said the bipartisan support marked a significant turning point in efforts to modernise the system.

He said the existing rule disproportionately disadvantages younger workers during the earliest years of employment, limiting the long-term benefits of compound investment returns.

"Because of an outdated requirement to work 30 hours per week, most under-18 workers are missing out on compulsory super contributions. It's time for this to change," Burgio said.

"This rule is getting in the way of our young Rest members building a fairer and more equitable retirement. Our analysis has shown that scrapping the rule could add thousands to their retirement balances.

"We wholeheartedly welcome this strong cross-parliamentary support for paying superannuation on every dollar earned and extending the Superannuation Guarantee to all under-18 workers. We urge the Government to now outline a plan to implement this change."

Rest analysis found a typical 15-year-old member could accumulate an additional $3400 in super by the age of 18 if the threshold was removed, potentially translating to around $18,100 more by retirement in today's dollars. Similar meaningful increases are projected for 16- and 17-year-old workers

The push to extend super coverage for younger workers forms part of a broader policy debate around equity within the retirement system. As industry groups and policymakers increasingly scrutinise gaps affecting women, low-income earners and casual employees.

Momentum behind the proposal also reflects wider efforts to align superannuation settings with contemporary workforce participation, particularly as younger as Australians enter employment earlier and often across multiple jobs.