Great super swindle to hurt young workers missing out

By the Editorial Team · Monday, August 31, 2026

Most Victorian workers under 18 will miss out on mandatory superannuation contributions this year due to a rule requiring over 30 hours of work per week for a single employer to qualify. The issue has sparked political debate ahead of the federal election, with Labor promising reforms to include all young workers, while opposition parties raise concerns about the implications for union influence and fund control.

A recent analysis reveals that the vast majority of Victorian workers under the age of 18 are set to miss out on significant superannuation contributions this year due to existing eligibility rules. According to data from the Super Members Council, approximately 156,000 young employees will be excluded from mandatory super payments because they do not meet the requirement of working more than 30 hours per week for a single employer.

The current regulation, which excludes part-time and casual workers under 18 who work fewer hours, particularly impacts young people often employed in sectors such as retail, hospitality, care, and community services. The average amount of superannuation missed by these workers in Victoria is estimated to be about AUD 735 this year alone, with the state facing the highest financial shortfall nationally—estimated at AUD 115 million in unpaid super contributions. New South Wales follows, with an estimated AUD 105 million in missed payments.

The Super Members Council, led by CEO Misha Schubert, advocates for removing the rule, arguing that it unfairly discriminates against younger workers by denying them superannuation accrual based on their age and hours worked. Schubert emphasized the importance of early super contributions, noting they benefit from longer compounding periods and that eliminating the rule would promote fairness and simplicity in the system.

Analysis further suggests that a typical young woman who works part-time for at least two years before turning 18 potentially forfeits around AUD 2,500 in superannuation, approximately 6 percent more than the average loss faced by young men in similar circumstances. By retirement, these early missed contributions could grow to about AUD 11,200 for women and AUD 10,600 for men.

Labor has committed to reforming these rules following a recent update to its policy platform, which promises to ensure that all workers can accumulate superannuation. However, the Albanese government has yet to specify a timeline for implementing these changes, citing ongoing budgetary considerations. Meanwhile, the Greens have pushed for reforms through a Senate inquiry focused on extending superannuation eligibility to workers under 18.

The issue remains politically contentious. Opposition Treasury spokesman Tim Wilson criticized Labor and the Greens’ proposals, expressing concern that increasing compulsory super contributions for young workers would allow union funds to divert money toward political activities. Wilson stated that superannuation is the workers’ money, and they should retain control over it rather than having it utilized for party campaigns.

Separately, Pauline Hanson, leader of One Nation, has voiced support for allowing early access to superannuation funds, adding another dimension to the ongoing debate over the future of Australia’s retirement savings system.

As the political discourse intensifies ahead of the next federal election, Treasurer Jim Chalmers has framed the contest as a “referendum on superannuation,” highlighting the central role the issue is expected to play in the upcoming campaign.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.