Blow for Aussie teenage workers hoping to get superannuation

Teenage workers have been dealt a blow with a peak business group rejecting calls for employees under the age of 18 to receive superannuation.

The Council of Small Business Organisations Australia (COSBOA) refused to back calls from advocates Industry Super Australia (ISA), who have argued younger workers should be added to the super payroll.

Those who are under 18 currently only get super if they work more than 30 hours a week for the same employer. 

It means more than 90 per cent of teen workers aren’t receiving the payment when they rock up for their shifts, according to figures from the ISA.

COSBOA CEO Luke Achterstraat said the measure is simply not financially viable.

Teenage workers have been dealt a blow with a peak business group rejecting calls for employees under the age of 18 to receive superannuation 

‘It’s costly to employ people at the moment with acute labour shortages and adding super to a cohort of younger workers would just make it more expensive to employ people who obviously aren’t motivated by super at this point in their careers,’ Mr Achterstraat told news.com.au. 

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The current Superannuation Guarantee by employers is 11 per cent.

Mr Achterstraat said many small businesses were already having to pay staff higher wages amid shortages.

‘Adding super will either make that person 11 per cent more expensive to employ or it would be taken out of their salary meaning they’d get less take home pay,’ he said.   

He said many of the workers in question were high schoolers trying to get a bit of pocket money.

Industry Super Australia has called for teenagers to be included in the super payroll

According to a report from the ISA titled Super Start to Work, the change to super would affect 375,000 Aussie workers under the age of 18.

‘Extending the Super Guarantee would mean the average U18 would benefit from a $2,600 increase in their super balance by the time they are 18 years old for work they perform,’ the report found. 

Teenagers are the only group of workers in Australia who do not receive super, since the scheme was set up in 1992.