SMC welcomes Senate report backing payday super, urges action next to pay super to under 18s, cleaners and nannies

Super Members Council

The Super Members Council welcomes today’s Senate Economics Legislation Committee’s payday super regulations inquiry final report, which strongly backs the start of payday super from 1 July and declares in-principle, cross-party support to close an unfair loophole denying most under 18 workers from being guaranteed super.

The denial of super for under-18s if they work less than 30 hours a week for their employer cost 515,000 teen workers nationally $405 million this financial year, the Council’s analysis shows.

Under current rules, many younger workers and some domestic workers can still miss out on super contributions, despite doing the same work as 17 million other Australians who are fully covered.

The Council has pushed to end the unfair super exclusion of under-18s and domestic workers doing less than 30 hours a week for one employer in private homes as cleaners, housekeepers and nannies.

Its analysis shows around 37,000 domestic workers missed out on super in 2026‑27, and the overwhelming majority - 86 per cent - of these low-paid workers are women.

On average, each of these workers misses out on almost $4,000 a year in super contributions, amounting to nearly $150 million nationwide, with women missing out on about $126 million in a single year alone.

A recent report by the Council found axing the 30-hour threshold would help close the gender super gap.

The current age-based minimum-hours rule means most teenage workers, especially young women who are more likely to work part-time, are not yet paid super on their wages. Women currently retire with 25 per cent less super than men, and the gap can start from their very first day at work.

The report found that if all under-18s were guaranteed super, a typical teenage girl could have nearly $2,500 more in her super by age 18, which could grow into $11,000 more by retirement with investment returns.

Universal coverage of super is critical to building a fair and effective retirement system, particularly for workers who are already at higher risk of being left behind — including young people, women, and those in insecure or part-time work.

“When something is outdated, you fix it. Fixing these outdated laws would help close the gender super gap and boost the retirement savings of thousands of hardworking Australians

“It doesn’t pass the pub test that some workers can still miss out on super because of their age or the type of work they do — that’s a gap that should be closed.”

“The Government must get on with fixing this gap as soon as possible after payday super laws are implemented.”