A typical teenage female worker could boost her super by $2,500 by the time she turns 18 and more by retirement if the rules were changed, a new Super Members Council report found. (Source: Getty) <\/p>\n
An \u201coutdated\u201d superannuation rule<\/a> is costing half a million Aussie workers up to $11,000 at retirement<\/a>, new research has found. Workers<\/a> under the age of 18 are only legally required to be paid super if they work more than 30 hours a week for one employer.<\/p>\n The rule was originally made to stop fees and insurance from eroding low-balance super accounts. However, with the super guarantee rate now at 12 per cent<\/a> and a fee cap introduced for super balances below $6,000<\/a>, there are calls for the rule to be scrapped.<\/p>\n A new Super Members Council report found scrapping the rule could mean half a million more young Aussie workers<\/a>, an estimated 515,000 this financial year, would benefit from being paid superannuation<\/a>.<\/p>\n RELATED<\/p>\n While teen girls make up 55 per cent of all under-18 workers, they are only 35 per cent of the teenage workforce currently guaranteed super due to the 30-hour rule.<\/p>\n That’s due to males being more likely to work as tradies and labourers<\/a> where full-time hours and apprenticeships are common, compared to females being more likely to work in retail and community service jobs with fewer hours.<\/p>\n The report found a typical female teenager could have nearly $2,500 more in her super by the time she turns 18 if the rule were changed. This could grow into $11,000 more by retirement with investment returns<\/a>.<\/p>\n A typical male teenager could have $2,000 more super by the age of 18, and an extra $9,000 by retirement.<\/p>\n Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/a><\/p>\n \u201cIt\u2019s simply not fair that young women today are missing out on thousands of dollars in retirement savings because of this outdated rule. The super gap starts from day one of men’s and women\u2019s working lives \u2014 and that needs to be fixed now,\u201d Super Members Council CEO Misha Schubert said.<\/p>\n \u201cEnsuring all under-18 workers are paid super will be another big stride forward to help close the gender gap and guarantee every young Australian a super start to work.\u201d<\/p>\n Rest, one of Australia\u2019s biggest profit-to-member super funds, has also called for the \u201cunfair loophole\u201d to be scrapped.<\/p>\n \u201cBy changing this unfair law, not only can we help countless young Australians have a fairer start with their super, we can also help close the gender super gap,\u201d Rest chief member officer Simone Van Veen said.<\/p>\n A Pyrxis survey found 73 per cent of Aussies supported changing the law, while 7 per cent did not support the change.<\/p>\n Separate research commissioned by Rest found that 98 per cent of members believed it was important for super to apply to all working Australians,<\/a> regardless of their earnings or working hours.<\/p>\n In November, the Australian Greens moved an amendment to allow under-18 workers to be paid super contributions regardless of their hours worked from July 1, 2026.<\/p>\n But the proposal was rejected by Labor and the Coalition.<\/p>\n Greens spokesperson for finance, employment and workplace relations Senator Barbara Pocock said the majority of young people worked fewer than 30 hours a week because of school and study, so missed out on super.<\/p>\n \u201cThat\u2019s unfair. Young people shouldn\u2019t be penalised for going to school or studying,\u201d she said.<\/p>\n \u201cThe Greens want super contributions extended to all under-18s, ensuring every young person is paid super on every dollar they earn, no matter how many hours they work.<\/p>\n \u201cUnder 18s pay taxes and contribute to our economy, so why shouldn\u2019t they receive super? Excluding young people from super only makes it harder to get ahead \u2014 robbing them of thousands in retirement savings and financial security.\u201d<\/p>\n Parliamentary Budget Office costings<\/a> found the proposal would increase fiscal and underlying cash balances by around $93.2 million over the 2025-26 Budget forward estimates. That\u2019s due to an increase in tax from super, partially offset by an increase in LISTO claims.<\/p>\n Currently, if you earn up to $37,000 a year, you may be eligible to receive a LISTO payment<\/a> of up to $500.<\/p>\n From July 1, 2027, the threshold will increase to $45,000<\/a> and the maximum payment will increase to $810.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n