An outdated superannuation rule is costing young Aussies thousands. A policy that limits super payments for under-18s working fewer than 30 hours a week is being called “unfair” by many, and it’s time for a change.
The 30-Hour Superannuation Rule: What You Need to Know
At the heart of the issue is the “30-hour rule” in Australia’s superannuation system. Workers under the age of 18 are entitled to superannuation contributions only if they work at least 30 hours a week for a single employer. While the rule was introduced years ago to avoid small super balances being eaten up by high fees, it now does more harm than good. The current rate of superannuation contribution is 12%, which can make a big difference in workers’ retirement savings—if they’re getting it.
In 2025, this rule is costing approximately 515,000 young Australians the chance to grow their super balances, especially in industries that employ young people in part-time or casual roles, reports Yahoo Finance. Retail, hospitality, and service sectors are where many under-18 workers are employed, and these industries often don’t provide enough hours to qualify for super contributions. For a young worker in a part-time role who’s missing out, this can amount to thousands of dollars left on the table over the course of their career.
The Gender Superannuation Gap: Women Are Hit Hardest
The problem is especially pronounced for women. Research shows that women make up 55% of the under-18 workforce, but only 35% of those eligible for super contributions under the current rules. This discrepancy is largely due to the nature of part-time and casual work, which is more common in industries where young women are overrepresented. Women in these roles often miss out on valuable superannuation contributions, and over time, that means a significant reduction in retirement savings.
It’s not just a few hundred dollars either. If the rule were changed, a young woman could see up to $2,500 more in her super by the time she turns 18. By the time she retires, that could add up to an extra $11,000—money that could be a game-changer in her financial future. And yet, because of this outdated rule, many young women miss out, perpetuating the growing gender superannuation gap.
What the Experts Are Saying
The Superannuation Members Council, which represents the interests of superannuation fund members, has called for the 30-hour rule to be scrapped. According to Simone Van Veen, Chief Member Officer of Rest Super, this rule change would benefit not only young workers but would also help close the gender gap in superannuation contributions. “Removing the 30-hour rule would give young Australians, particularly young women, a fairer chance at building a more secure retirement,” Van Veen says.
The Australian Government Actuary, an independent body that advises on superannuation policy, also supports removing this rule, stating that it could lead to a more inclusive superannuation system for all workers, regardless of their hours or gender.
Public Support for Change
The public is on board with the proposed changes. A recent survey found that 73% of Australians support scrapping the 30-hour rule, citing fairness and equal opportunity for all workers, regardless of their job hours. Many feel that it’s unfair to penalize young workers, especially women, for taking on flexible work hours in industries where part-time jobs are common.
What’s Next for Superannuation Reform?
The question now is: will lawmakers listen? With increasing public support, and a growing recognition of how the 30-hour rule is holding back the next generation of workers, it seems that the push for change is gaining momentum. If the rule is removed, it could make a huge difference for young workers starting their careers, especially in industries like retail and hospitality, where part-time and casual roles are prevalent.
As the superannuation system continues to evolve, addressing outdated rules like the 30-hour restriction will be crucial in ensuring fairness and equality for all workers. It’s a small change, but one that could make a significant difference for the next generation of retirees, particularly for young women who are often left behind.
