SMC calls for guaranteed super for domestic workers

The Super Members Council (SMC) has called on the government to scrap laws which deny domestic workers in private homes - cleaners, housekeepers and nannies - guaranteed superannuation.

SMC said these workers are primarily women and the laws are "outdated and discriminatory".

Under current laws, domestic workers employed in private homes who work less than 30 hours a week for the same employer would continue to be excluded from guaranteed super. SMC said this was "an omission that can no longer be justified".

The Senate Economics Legislation Committee is inquiring into the law which gives rise to the exclusion of part-time domestic workers. SMC has urged government to remove the exclusion.

SMC analysis found 37,000 domestic workers would be affected by the exclusion in 2026-27, with roughly 86% of the workforce being women.

SMC estimates on average, each worker misses out on almost $4000 a year in super contributions, amounting to nearly $150 million nationwide, with women missing out on about $126 million in that single year alone.

"The exclusion entrenches the gender super gap and undermines the universality that underpins Australia's retirement system," SMC said.

"The outdated exclusion was originally made to prevent fees eroding low-balance super accounts, but that reason no longer stacks up now there are fee protections on small super balances."

SMC has recommended the government amend the regulations to remove the exclusion for domestic cleaners, housekeepers and nannies who work fewer than 30 hours a week, ensuring domestic work is treated the same as other forms of employment.

Previous SMC modelling found removing the exclusion could mean a typical part-time domestic cleaner retiring with more than $130,000 extra in super, increasing retirement income by around $4500 a year, while also reducing reliance on the Age Pension.

SMC has previously advocated for this same law to be scrapped in relation to under-18s, who are also excluded if they work less than 30 hours a week with the same employer, after its analysis found 515,000 teen workers nationally will be denied a combined $405 million this financial year.

SMC said axing the 30-hour threshold would help close the gender super gap.

"Cleaners, housekeepers and nannies are doing essential, paid work, yet the law still treats them as second-class citizens when it comes to super - and that burden falls overwhelmingly on women," SMC chief executive Misha Schubert said.

"When something is outdated, you fix it. Fixing these outdated laws would help close the gender super gap and boost the retirement savings of thousands of hardworking Australians."