Labor has backed mandatory superannuation for young Aussie workers under the age of 18, regardless of hours worked. More than half a million young Aussies could stand to benefit from the change, which could see their retirement nest eggs boosted by millions.
Labor’s national conference carried a motion calling on the government to mandate superannuation payments for workers younger than 18. Currently, workers under 18 are only required to be paid super if they work more than 30 hours a week.
The platform now specifies that “all workers including those under 18 and regardless of how they are engaged, can accumulate superannuation on every dollar earned”.
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Some major retailers like Bunnings, Aldi, JB Hi-Fi and Priceline already pay workers under 18 superannuation regardless of hours worked, but there are many businesses that don’t. That includes major employers like Coles, Woolworths, McDonald’s, Kmart and Target.
The Greens last month led a push in the Senate to stop Treasurer Jim Chalmers from using ministerial discretionary powers to exclude companies from paying super to minors.
The government’s new Payday Super laws repealed sections of the law that excluded workers under 18 working fewer than 30 hours per week from being entitled to the super guarantee. But using ministerial discretion powers, the government put these exclusions back into law.
Labor voted against the Greens’ move, but Chalmers left the door open to the superannuation change, calling it an “important” issue.
Super Members Council analysis found the rule cost under 18s about $405 million in super contributions over the last financial year alone.
Rest Super found a typical 15-year-old member could benefit from $3,400 extra in super by their 18th birthday and an estimated $18,100 by retirement if the rule was changed.
Paid prac extension, Fair Work Court announced
Labor’s 50th national conference kicked off in Adelaide today.
In his speech, Prime Minister Anthony Albanese announced an expansion of the federal government’s paid prac scheme to include an additional 10 university courses.
From July 1, 2027, the payments will be extended to cover students of clinical psychology, physiotherapy, occupational therapy, speech pathology, paramedicine, radiography, pharmacy, rehabilitation therapies, audiology and podiatry.
Previously, the $338.60 per week payment was only available to those studying to be nurses and midwives, teachers and social workers.
“This is real help with the cost of living for tens of thousands of Australians and a real investment in the health care workers of tomorrow,” Albanese said.
The government also announced the creation of a new Fair Work Court, which will be headed by “specialist judges” in consultation with the Fair Work Commission.
The new court is intended to resolve workplace disputes faster and at lower costs for workers and employers.
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