The Australian Greens are ramping up pressure on the Albanese government to end a long-standing superannuation exemption that prevents many workers under the age of 18 from receiving compulsory super payments.
According to the official website of Greens, the push comes as Labor's Treasury Laws Amendment (Payday Superannuation) Bill 2025 takes effect on July 1, introducing payday super, which requires employers to pay superannuation at the same time as wages instead of quarterly.
While the new legislation removes the previous legislative exemption for under-18 workers, accompanying regulations reintroduce the rule excluding employees under 18 who work fewer than 30 hours a week for one employer from receiving compulsory super.
The Greens have lodged a partial disallowance motion in the Senate seeking to overturn those regulations, with the proposal due to be debated and voted on today.
Millions at stake
The Greens argue the current rules deny more than 515,000 young Australians an estimated $405 million in superannuation contributions during the 2025-26 financial year.
According to evidence gathered through a Senate inquiry, the party says many of Australia's largest employers of young workers do not pay superannuation to employees under 18 who work fewer than 30 hours a week. Retailers including Coles, Woolworths, McDonald's, Kmart and Target could be required to pay super to teenage staff regardless of hours worked if the exemption is removed.
Some major employers, including Bunnings, Aldi, JB Hi-Fi and Priceline, already pay superannuation to eligible workers under 18 regardless of weekly hours.
Greens criticism
Australian Greens spokesperson for finance, employment and workplace relations, Senator Barbara Pocock said, "The kids are not alright. The cost of everything has gone up but wages haven’t kept up with inflation. Labor knows how hard it is for young people and yet they choose to prevent young people from accessing the money they’ve earned.”
She added, "This is deliberate exclusion of super for young people. Robbing 515,000 young workers an estimated $405 million in super contributions in 2025-26 alone.”
"A 16-year-old stacking shelves at Coles or Woolies or flipping burgers at McDonald’s earns every dollar of their wage the same way an adult worker does. Their labour has value,” She also mentioned.
"The majority of young people (93 per cent) work fewer than 30 hours a week because of school and study commitments, meaning they miss out on super. That’s unfair. Young people shouldn’t be penalised for going to school or studying,” continued.
"Labor is leaving under 18s underpaid and undercutting their futures. A party that leaves young workers out isn't the party for workers.
"Young people are working hard, paying tax, and doing the right thing. They deserve every dollar they've earned, including their super. Under 18s pay taxes and contribute to our economy, so why shouldn’t they receive super?,” she questioned.
"Whether they’re 16 or 60-years-old, every worker deserves super, and should receive the same financial rights as everyone else whether part-time or full-time,” added.
"The Greens will continue to fight for young workers. We will fight Labor on these restrictions to ensure that every young person is paid super on every dollar they earn, no matter how many hours they work,” she concluded.
Government response
Treasurer Jim Chalmers has signalled Labor remains open to further discussions on extending superannuation coverage to under-18 workers but said the government's immediate focus is implementing payday super.
"This is a really important issue. I actually met with a delegation of young workers about this last week," Chalmers told the ABC.
"We are always looking for ways to strengthen the superannuation system to make it deliver for more workers."
Industry backing
The Greens' proposal has received support from the Australian Council of Trade Unions, Rest Super and the Super Members Council.
Rest Super described the current exemption as "discriminatory, arbitrary and outdated" in its submission to a Senate inquiry, estimating that a typical 15-year-old worker could accumulate around $3,400 more in super by age 18 and about $18,100 more by retirement if compulsory super was paid on all earnings.
The fund estimates that around 93% of under-18 workers currently work fewer than 30 hours a week, leaving the majority ineligible for compulsory super contributions.
Super Members Council has also called for the removal of similar exemptions affecting domestic workers such as cleaners, nannies and housekeepers who work fewer than 30 hours a week in private homes.
However, business groups, including the Australian Chamber of Commerce and Industry, have opposed the proposal, arguing that extending compulsory super to all under-18 workers would increase compliance costs and add further complexity for employers.