ALP supports mandatory super for under‑18 workers

The Australian Labor Party has added a pledge to extend compulsory superannuation to every worker under 18 to its national platform, a move that could reshape retirement savings for young Australians.

Policy change removes hours‑based hurdle

At Labor’s National Conference delegates voted unanimously to eliminate the existing rule that only employees under 18 who work more than 30 hours a week for a single employer qualify for the Superannuation Guarantee. The current threshold excludes many part‑time and casual workers, leaving them without the baseline retirement contributions that older employees receive.

Under the proposed amendment, any young person with a job – whether they are 16, 17 or 18 – would automatically receive compulsory super contributions from their employer. The shift is intended to close a gap that has left a sizable portion of the youth workforce without the financial safety net that superannuation provides.

Industry reaction and projected benefits

The Association of Superannuation Funds of Australia (ASFA) praised the decision, saying it would boost retirement balances from the outset of a worker’s career. “If you’re working, you should get super, whether you’re 16 or 60,” ASFA chief executive Mary Delahunty said. “Extending the super guarantee to workers under the age of 18 could add thousands to their savings at retirement, and we welcome the commitment from the ALP to add this to their national platform.”

Superannuation fund Rest also welcomed the policy, noting that most under‑18 employees currently miss out on compulsory contributions. Chief member officer Simone Van Veen explained, “Right now, a 15‑year‑old and an 18‑year‑old could work side by side in the same job, but only one of them would be entitled to compulsory super. This doesn’t make sense and needs to change.”

Rest’s analysis suggests a typical 15‑year‑old could accumulate an extra $3,400 by age 18 and roughly $18,100 more by retirement if the 30‑hour rule were scrapped. Similar gains were projected for 16‑ and 17‑year‑old members, indicating that the reform could have a lasting impact on the retirement outcomes of a whole cohort.

Both organisations urged the government to move beyond the policy commitment and outline a concrete implementation timeline. Van Veen added, “It’s essential the potential impact on employers is thoroughly considered through careful consultation and the change is implemented through a multi‑year, staged rollout.”

Prime Minister Anthony Albanese used the conference platform to situate the proposal within a broader suite of workplace reforms, citing recent steps such as superannuation on Paid Parental Leave and the rollout of payday super. “For a decade, six months of Paid Parental Leave was a goal in our platform. Today, it is the law of the land. And, for the first time, superannuation is paid on top,” Albanese said.

He also highlighted measures aimed at remote communities, noting that the CDP has been replaced with “thousands of real jobs for real wages” and that “superannuation is paid, on pay day.” The emphasis on consistent contributions reflects the government’s view that super should be a universal component of employment, regardless of age or work pattern.

Young workers will finally receive their entitlement.

From a broader perspective, aligning compulsory super with all under‑18 workers reflects an effort to update the social safety net in line with contemporary labor market realities. Young people increasingly engage in gig‑type or irregular work, and removing the hours requirement could help ensure that early earnings are not left unprotected. This policy could also reduce future reliance on age‑based welfare by building a larger pool of retirement savings from a younger age.

Implementation details remain to be clarified. The Labor platform does not specify a date for the change, and the government will likely need to consult with employer groups, state regulators and the superannuation industry to address concerns such as administrative costs and compliance mechanisms. A phased approach, as suggested by Rest, could allow businesses time to adjust payroll systems while still delivering the intended benefits to young workers.

If the reform proceeds as outlined, the immediate effect would be that every teenager with a paycheck becomes a member of the super system, accumulating contributions that compound over decades. Over time, the policy could shift the distribution of retirement wealth, narrowing the gap between those who entered the workforce early and those who started later.