Published: 11 Jul 2023
A discriminatory legal relic that largely denies under-18-year-old 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.
*The above material, whilst correct at the time of publication may include references or statements which are no longer current.