Thousands of Victorian teenage workers missing out on $115 million in superannuation due to age-based exclusion

Thousands of teenage Victorian workers are missing out around $115 million in superannuation due to a law which excludes some under-18s from guaranteed super, according to new modelling.

The peak body representing profit-to-member superannuation funds, the Super Members Council, said under-18s were excluded from guaranteed super unless they worked more than 30 hours a week for one employer.

The council said its analysis found about 156,000 teen workers will miss out on an average of $735 in super in 2026-27, adding up to $115 million across the state.

Super Members Council chief executive Misha Schubert said that figure was the highest of any state in Australia.

"Teenage workers in Victoria are being denied a basic workplace right that 17 million other working Australians enjoy — and that's just not fair," she said.

"Yet this outdated and discriminatory law treats teen workers differently just because of their age and their hours."

The Super Members Council found young workers in NSW would miss out on $105 million, out of a nationwide total of $411 million in missed super this financial year.

Its analysis found 91 per cent of under-18s worked fewer than 30 hours a week.

It said the average teenage, part-time worker could miss out on $2,500 in super contributions by age 18, which could compounds to $11,000 by retirement.

The council is calling for the law to be scrapped and said it was "out of step with community expectations".

"Many teenagers have their first jobs in retail, hospitality, care and community services. These are real jobs, with real wages, and they should come with real super," Ms Schubert said.

"The earliest super contributions matter because they have the longest time to compound."

Loading...

"The earliest super contributions matter because they have the longest time to compound."

Labor members vote to extend compulsory super payments

A push to reform the law is being led federally by the Greens, which introduced an amendment bill into parliament earlier this month.

The party also secured a Senate inquiry on the issue, which will report to parliament in November.

"For too long, Australia's superannuation system has failed young workers. It's time for young workers to be paid the super they deserve," a Greens spokesperson said at the time.

"The continued exclusion of workers under 18 who work fewer than 30 hours per week is a clear case of legislated age-based discrimination that no longer has any defensible policy rationale."

Federal Treasurer Jim Chalmers has previously expressed support for reform, saying it was an "important" issue, but is yet to make any legislative moves.

"We are always looking at ways to strengthen the superannuation system and make it deliver for more workers," he said in June.

Delegates at Labor's National Conference last month voted to include a policy to extend compulsory superannuation payments to under-18s, regardless of how many hours they worked.

The Australian Chamber of Commerce and Industry said it was concerned by the push for reform, saying it would have "very serious consequences for the small business community and the broader business community".