Queensland Teens Missing Out on $108 Million in Super Under Outdated Rule, Report Finds

Nick |

Welfare recipients are receiving a boost to their payments to address cost of living pressures.
Welfare recipients are receiving a boost to their payments to address cost of living pressures.

More than 120,000 teenage workers in Queensland are projected to lose out on tens of millions of dollars in superannuation this financial year because of an existing threshold rule, according to new research.

Analysis released by the Super Members Council shows 124,000 workers aged under 18 across the state will miss out on $108 million in superannuation in 2026-27. Under current workplace rules, employees under the age of 18 only receive guaranteed superannuation contributions if they work more than 30 hours a week for a single employer.

The Council found that affected Queensland teenagers will miss out on an average of $870 each over the financial year. With 91 per cent of under-18 employees working fewer than 30 hours per week, the vast majority fall short of the threshold required to receive mandatory payments.

According to the modelling, a typical teenager working part-time for at least two years before turning 18 misses out on roughly $2,400 in direct contributions. Based on compound returns, this loss is estimated to reach $11,000 in today’s dollars by retirement age.

The findings indicate that young women face a disproportionate impact because they are more likely to work part-time than their male peers. A typical young woman is estimated to miss out on around $2,500 in contributions prior to turning 18, which is approximately 6 per cent more than a typical young man. By retirement age, this gap expands to an estimated loss of $11,200 for women compared to $10,600 for men.

Super Members Council chief executive Misha Schubert described the exclusion as outdated and discriminatory, noting that 17 million other working Australians receive guaranteed superannuation entitlements. Ms Schubert stated that superannuation should be paid from the first hour of a person’s first job, pointing out that teenagers commonly work in sectors such as retail, hospitality, care and community services.

The organisation has called on policymakers to abolish the under-18 exclusion rule entirely. To minimise disruption, the Council recommended introducing a transition period to give employers time to adjust, mirroring the process used in 2022 when the federal government removed the rule denying superannuation to individuals earning under $450 a month.