More than half a million young Australian workers will keep missing out on compulsory superannuation after the Senate voted down a Greens bid to close a long-standing exemption. The defeat came as Labor’s Payday Super reforms took effect on 1 July 2026.

The exemption, written into the Treasury Laws Amendment (Payday Superannuation) Regulations 2026, excludes workers under 18 who work fewer than 30 hours a week from the superannuation guarantee. The Greens moved a partial disallowance motion in the Senate to remove it. Labor and the Liberals joined forces to vote it down.

Greens Senator Barbara Pocock, the party’s workplace relations spokesperson, said the vote amounted to “robbing 515,000 young workers an estimated $405 million in super contributions in 2025 to 26 alone.” She added: “This is a classic major party delay tactic: agree in principle, promise more consultation and leave vulnerable people waiting for fair treatment and long overdue reforms.”

The numbers behind the exemption are stark. About 93 per cent of workers under 18 usually clock fewer than 30 hours a week, meaning almost all of them fall outside the super guarantee. Modelling by Rest Super found a typical 15-year-old would receive an extra $3,400 in super by their 18th birthday if the exemption were scrapped, and roughly $18,100 more at retirement in today’s dollars. The Senate Economics Legislation Committee reviewed the regulations in May 2026 and recommended they proceed without amendment, noting that most employers of under-18s currently pay no super at all. Labor’s position, as reported by Accountants Daily, is that bedding down Payday Super should come before broadening coverage to under-18s.

The ACTU has flagged the exclusion as “contrary to the principle of universal superannuation.” Some major employers already go further than the law requires: Aldi, Bunnings, JB Hi-Fi and Priceline all pay super to under-18 workers regardless of hours, putting businesses that do so voluntarily at a cost disadvantage against those that don’t.

For the trades, the outcome matters. Young workers doing part-time labouring, warehouse shifts, or hardware retail under 30 hours a week will accumulate nothing in super from those jobs until they turn 18, or until they cross the hours threshold. Small trade businesses that voluntarily pay these workers super are already absorbing a cost their competitors can legally avoid. The Senate vote locks that in, at least until a future parliament decides to revisit it.

Frequently asked questions

Why don’t workers under 18 get compulsory superannuation?

Under the superannuation guarantee rules, workers under 18 are only entitled to compulsory super if they work 30 hours or more in a week. Workers below that threshold are excluded, regardless of how much they earn.

How many young workers does the exemption affect?

About 515,000 workers under 18 are affected. Around 93 per cent of under-18 workers typically clock fewer than 30 hours a week, so almost all of them fall outside the super guarantee.

What would removing the exemption mean for a young worker’s retirement savings?

Modelling by Rest Super found a typical 15-year-old would accumulate an extra $3,400 in super by their 18th birthday if the exemption were scrapped, and roughly $18,100 more at retirement in today’s dollars.

Do any employers already pay super to under-18 workers voluntarily?

Yes. Aldi, Bunnings, JB Hi-Fi and Priceline all pay super to under-18 workers regardless of hours worked, going beyond what the law currently requires.

Sourced from The West Australian, Accountants Daily, HR Leader, Yahoo Finance / Mirage News, ASFA. Original article.