Superannuation for under 18s

Do I get paid super if I’m under 18?

Yes, if you’re under 18 years old you may be eligible to receive super contributions from your employer, known as the ‘superannuation guarantee’, or SG for short. Just remember that the rules can be a little different.

Here's the deal: if you're a minor and you work more than 30 hours a week, your employer generally has to pay you SG contributions, no matter how much you earn – even if you’re paid in cash. Keep in mind there are exceptions, see below for details.

But if you work less than 30 hours a week, your employer doesn't have to pay you super, although they might decide to do it anyway. If you have more than one job, you should count the hours for each job separately. This means you could be eligible for the SG for one job but not eligible for another.

Case study: Nia works 31 hours a week	Case study: Kamal works different hours each week
Nia is 16 years old and is completing an electrician apprenticeship program. Each week, she works 31 hours. This means she is eligible for SG payments from her employer.	Kamal is 17 years old and works two jobs: at the supermarket and at his uncle’s café. At the supermarket, he works 32 hours a week. This means he is eligible for SG payments from this employer. When he has time, he also covers shifts at his uncle’s café on a casual basis, adding 4-6 hours a fortnight. This means his uncle doesn’t need to pay him SG.

Case study: Nia works 31 hours a week	Nia is 16 years old and is completing an electrician apprenticeship program. Each week, she works 31 hours. This means she is eligible for SG payments from her employer.
Case study: Kamal works different hours each week	Kamal is 17 years old and works two jobs: at the supermarket and at his uncle’s café. At the supermarket, he works 32 hours a week. This means he is eligible for SG payments from this employer. When he has time, he also covers shifts at his uncle’s café on a casual basis, adding 4-6 hours a fortnight. This means his uncle doesn’t need to pay him SG.

What is the superannuation guarantee?

Superannuation guarantee contributions are mandatory payments made by employers directly to eligible employees’ super fund accounts. The minimum amount your employer must contribute is based on the current SG rate as percentage of your ordinary time earnings (generally meaning the amount you earn for ordinary hours of work, including things like bonuses and paid leave). The SG rate for the 2024-25 financial year is 11.5%.

Keep in mind that SG contributions do not come out of your wages or salary. It’s a percentage amount paid on top of your income.

SG contributions can help you save money for your retirement, with the goal of having enough money to live on when you stop working.

Exceptions to the super guarantee

Aside from the 30-hour threshold for minors, there are other cases where your employer doesn’t have to pay you super. But if you’re under 18, some of these may not apply to you. Some exceptions include if you’re:

an Australian resident working for and being paid by an employer overseas for work done outside of Australia
temporarily working in Australia on behalf of an overseas employer and are covered by a bilateral super agreement
a non-resident employee working outside Australia
an employee being paid for work as a non-resident in a Joint Petroleum Development Area (JPDA)
a foreign executive who holds certain visas or entry permits
a paid private or domestic worker (e.g. nannies or housekeepers) who works for 30 hours or less per week
paid under the Community Development Employment Program (CDEP).

Superannuation fees on low-balance accounts

For many younger individuals, super balances are typically lower as they might be in their first job or working part-time. Super funds are legally required to cap the amount of fees charged on low-balance accounts. If your super account has less than $6,000, there’s a cap of 3% per annum of your account balance on administration and investment fees (including indirect costs). For example, if your super balance is $5,000, your administration and investment fees (including indirect costs) for the year can’t be more than $150.

So, if you’re a young person just starting out in the workforce and don’t have much super, the fee cap may help protect your super savings from being eaten away by certain fees.

Learn more about fees and costs at Rest

Some tips to help you get your super on track if you’re under 18

Retirement might be ages away, but you could thank yourself in the future for getting on top of your super. Whether you’re working part-time, doing casual jobs, or just starting to learn about money and savings, there are a few simple tips to help you get on track.

1. Consider keeping your super together

When you’re young and just starting out, you might find yourself working in a few different jobs while you discover what you like doing. One thing to think about is keeping all your super in one place by consolidating your super funds into one account. This could make things easier for you.

By having just one super account, you could save on paying multiple fees for multiple accounts, which could be better for your super balance over time. Also, it can mean less paperwork and less hassle to manage.

Remember consolidating is a big decision, so make sure you compare your options and consider which fund is right for you. Check out the fees and costs of your other fund(s) plus any benefits that would be lost, such as insurance cover. Make sure your other fund(s) knows about any contributions you intend to claim a tax deduction for, before combining your super. If you have any questions, speak to a licensed financial adviser, or visit the ASIC MoneySmart website for more information.

2. Check out the government super co-contribution

The government’s super co-contribution scheme could boost your super by up to $500 per year if:

your total income is less than $58,445 (before tax) for the 2023-24 financial year
you make at least one eligible personal contribution from your take-home pay to your super
your super fund has your tax file number (TFN)
you meet the eligibility criteria.

If you received gifted money from parents or other family members, it’s possible to contribute this to your super. However, to be eligible for the super co-contribution, you must make the contribution yourself. To find out more about the eligibility criteria, visit the ATO website.

The exact amount of the co-contribution depends on your income and how much you contribute. Or use our handy calculator to see the potential super co-contribution you could receive under the scheme if you are eligible.

It’s important to remember that you should consider your circumstances and objectives before adding to your super. Super can only be accessed when you meet a condition of release.

3. Be aware of the low-income super tax offset (LISTO)

The LISTO is a super payment of up to $500 that the government makes to eligible people who earn less than $37,000 in a financial year.

Think of it as a refund from the government for some of the tax that you pay on certain contributions paid into your super account (like those made by your employer).

If you’re eligible for the LISTO, you don’t need to do anything to receive it. The government will automatically pay it directly into your super account. Just make sure your super fund has your TFN, otherwise they may not be able to accept the payment for you. To find out more about LISTO and who may be eligible, visit the ATO website.

Benefits	Considerations
Start investing early and benefit from long-term compound interest Professionally managed investment that stays with you for life Could be eligible for the government super co-contribution or LISTO	Super can’t be accessed until you meet a ‘condition of release’. For most people, this is when they reach preservation age and retire. Consider your circumstances and objectives before adding to your super. Speak with a financial adviser for assistance. Fees and insurance premiums may reduce account balance (Note: the fee cap may help protect low balances)

Benefits	Start investing early and benefit from long-term compound interest Professionally managed investment that stays with you for life Could be eligible for the government super co-contribution or LISTO
Considerations	Super can’t be accessed until you meet a ‘condition of release’. For most people, this is when they reach preservation age and retire. Consider your circumstances and objectives before adding to your super. Speak with a financial adviser for assistance. Fees and insurance premiums may reduce account balance (Note: the fee cap may help protect low balances)