A national push to change Australia’s superannuation rules has highlighted a costly gap affecting many teenage workers — including children in Indian-Australian families taking their first casual jobs in cafés, supermarkets, retail stores and community businesses.
Under the current rule, an employee aged under 18 is generally entitled to compulsory super only when they work more than 30 hours in a week. New modelling cited by ABC News estimates that 156,000 Victorian teenagers alone could miss out on a combined $115 million in 2026–27. Nationally, the estimated gap is $411 million.
The important message for families is that reform is being debated, but it has not yet become law. Parents and young workers should understand the rule that applies now, check every payslip and preserve employment records.
What the current super rule says
The Australian Taxation Office (ATO) says employers must generally pay super guarantee contributions for employees aged 18 and over, regardless of the number of hours worked. For an employee under 18, the employer must pay super when that person works more than 30 hours in a week.
The threshold applies week by week and separately to each employer. Hours cannot be averaged across a fortnightly or monthly pay cycle. This means a 17-year-old working 20 hours at a supermarket and 15 hours at a restaurant may receive no compulsory super from either employer, even though their combined workload is 35 hours.
When an under-18 employee works more than 30 hours for one employer in a particular week, that employer should pay super for that eligible week. The current super guarantee rate is 12 per cent of qualifying earnings.
Why the issue has returned to Parliament
The Super Members Council argues the age-and-hours exclusion is outdated and says 91 per cent of workers under 18 work fewer than 30 hours a week. Its modelling, reported by the ABC, estimates an average affected Victorian teenager could miss $735 in super during 2026–27.
The council also estimates a typical part-time teenager could miss $2,500 in contributions before turning 18, potentially becoming about $11,000 less by retirement because of lost investment growth. These are modelling estimates rather than guaranteed outcomes; actual balances depend on wages, fees, investment returns and future work patterns.
The Greens introduced an amendment bill in August and secured a Senate inquiry expected to report in November. Labor’s National Conference has supported extending compulsory super to under-18s regardless of hours, while business groups have raised concerns about costs and administration for small employers. Until Parliament passes a change and it commences, the existing 30-hour test remains in place.
What Indian-Australian families should check now
For families helping a teenager enter Australia’s workforce, a short monthly check can prevent confusion:
- Review hours for each week: do not rely only on the total shown for a fortnight.
- Check the payslip: look for the super fund name and contribution amount, especially after a week above 30 hours.
- Confirm fund details: log in to the nominated super fund and make sure the employer payment has arrived.
- Keep records: retain rosters, timesheets, payslips and messages about shift changes.
- Check the employment type: casual, part-time and full-time workers can all qualify. Temporary residents can also be eligible.
- Do not assume an ABN removes entitlement: some contractors paid mainly for their labour may still qualify for super.
Since 1 July 2026, Payday Super rules require employers to make contributions each payday, generally allowing the fund to receive and allocate the money within seven business days. A longer period can apply in limited situations, including some first contributions for new employees.
What to do if eligible super is missing
Start by asking the employer or payroll team for an explanation and confirming that the fund details are correct. A delay may be an administrative mistake, but it should not be ignored.
If the issue remains unresolved, the ATO is the main agency responsible for compulsory super and provides an online process for reporting unpaid super. The Fair Work Ombudsman can explain workplace rights and can be contacted on 13 13 94. The ATO can be contacted about employee tax and super matters on 13 28 61. Language assistance is available through the Translating and Interpreting Service on 13 14 50.
The practical takeaway
Australia’s debate may eventually remove the under-18 hours threshold, but families should not mistake a proposal for a completed change. For now, the safest approach is simple: track weekly hours by employer, check payslips and fund transactions, and act promptly when an eligible payment is missing. Those early contributions may look small, but decades of compounding can make them meaningful.