New report reveals an unfair super law that costs young workers $10k

A discriminatory legal relic that largely denies under-18-yearold workers super contributions could ultimately cost them more than $10,000, a new Industry Super Australia report warns.

About 375,000 of Australia’s youngest workers are locked out of the nation’s world class retirement system because they are not entitled to compulsory super contributions unless they work more than 30 hours a week for the same employer.

New Industry Super Australia (ISA) modelling finds that this law blocks about $330 million a year in super contributions to workers who are under-18.

On average these young workers would get an extra $885 a year in super contributions. If these contributions were paid to workers under-18 , after decades of investment returns, it would grow to $10,200 by the time they retire at 67.

ISA’s Super Start to Work Report argues the 30 hours per week threshold should be removed, as it discriminates against young people at the very start of their working life.

This early career discrimination not only financially penalises young workers it creates an administrative burden for employers who must keep track of the hours under-18s work. An especially complex task for this highly casualised workforce and when employers pay super quarterly.

Most under-18-year-old workers are denied