Do you employ teenagers who work part-time or casual hours? A proposed change to superannuation could soon affect your payroll obligations.
The debate over superannuation for workers under 18 has returned to the spotlight, after the Australian Labor Party formally adopted a policy supporting compulsory superannuation for all workers under 18, regardless of how many hours they work.
The policy shift follows renewed calls from Greens workplace relations and finance spokesperson Senator Barbara Pocock for the Albanese Government to support her private member’s bill seeking to remove the current 30-hour requirement.
However, employers should note that the proposed change is not yet law.
What are the current rules?
Under the current Superannuation Guarantee rules, an employee under 18 generally needs to work more than 30 hours in a week before their employer is required to pay compulsory superannuation.
This means many teenagers working part-time or casual jobs while studying do not currently receive compulsory super contributions.
The Australian Taxation Office confirms that employers must pay super for employees under 18 where they work more than 30 hours in a week.
What is Labor proposing?
Labor’s newly adopted policy would remove the age-based 30-hour requirement.
Under the policy, all workers, including those under 18 and regardless of how they are engaged, would be able to accumulate superannuation on every dollar they earn.
The proposed change could affect around 515,000 young Australian workers, many of whom currently miss out on compulsory super because they work fewer than 30 hours a week.
The Greens have been pushing for the change through Parliament, with Senator Barbara Pocock calling on Labor to follow through on its newly adopted policy.
The issue has also attracted political criticism. Liberal Senator Andrew Bragg has used the proposal to question the expansion of compulsory superannuation, joking that the next step could be “super for cats and dogs”.
Why does this matter for employers?
For businesses employing young people, particularly in industries such as retail, hospitality, tourism, fast food and seasonal work, removing the 30-hour threshold could increase payroll costs.
The current Superannuation Guarantee rate is 12% of ordinary time earnings.
For an employer with a significant number of teenage employees, even relatively small individual contributions could become a meaningful additional employment cost across the workforce.
It could also require businesses to review their:
- payroll systems;
- employment contracts;
- onboarding processes;
- superannuation calculations;
- workforce budgets; and
- payroll compliance procedures.
What should employers do now?
Although the proposed reform is not yet law, employers who regularly employ under-18 workers can start preparing.
Review your teenage workforce
Identify how many employees under 18 currently work fewer than 30 hours per week.
These workers could be among those most affected if the proposed change becomes law.
Estimate the potential cost
Businesses should model what an additional 12% superannuation obligation could mean for their payroll if the 30-hour threshold is removed.
This can help employers anticipate the financial impact rather than react after legislation is introduced.
Check your payroll systems
Employers should ensure their payroll systems correctly identify employees’ ages, hours and superannuation entitlements under the current rules.
If the law changes, systems may need to be updated to automatically calculate super for eligible under-18 workers.
Monitor the legislation
Labor’s national platform is an important policy commitment, but it does not itself change the Superannuation Guarantee law.
Employers should therefore avoid changing their payroll practices solely on the basis of the announcement.
Instead, monitor the Government’s legislative response and obtain advice once the proposed legislation is introduced.
What about Payday Super?
Employers should also remember that Payday Super commenced on 1 July 2026, requiring employers to pay superannuation contributions at the same time as wages and salary.
The Australian Government has therefore already introduced significant changes to the timing of superannuation payments this year.
Any future extension of superannuation to under-18 workers would add another important consideration for employers managing payroll compliance.
Preparing for the next change
The debate over superannuation for under-18 workers is not simply about teenagers and retirement savings. For employers, it is also about payroll costs, compliance and workforce planning.
With Labor now committed to extending superannuation to under-18 workers as part of its policy platform, businesses that employ large numbers of young workers should start considering the potential impact.
The proposed reform is not yet law, but employers should be prepared for the possibility that the current 30-hour threshold could change.
NB Employment Law can assist employers with employment contracts, payroll compliance, workplace policies and preparing for changes to Australian employment law.
Need help reviewing your employment arrangements? Talk to NB Employment Law about your workplace obligations.