Rest is calling for urgent action to abolish an “unfair and outdated” superannuation rule that prevents most under-18 workers from regularly receiving compulsory super contributions, a reform that could add thousands to a young person’s retirement savings and set the next generation up for a stronger financial future.
New analysis by Rest, included in its 2026-27 Pre-Budget Submission, indicates a member who starts working at age 15 could be $18,100 better off at retirement, in today’s dollars, if this rule is changed.
Rest Chief Executive Officer, Vicki Doyle, says the analysis proves the current eligibility rules for compulsory super are getting in the way of young Rest members building a fairer and more equitable retirement.
“The overwhelming majority of under-18 workers are not eligible for compulsory super contributions because they work less than 30 hours a week.1 Because of this outdated rule, most under-18 workers are missing out on a financial benefit the rest of us are entitled to and we strongly believe this needs to change,” says Ms Doyle.
“A 15-year-old starting a job today is unlikely to receive many super contributions for the first 3 years of their working life.
“Our new analysis shows how meaningful those extra 3 years of super could be. Even an extra year of super for a 17-year-old member could provide a $7,000 boost, in today’s dollars, at retirement.
“It doesn’t make sense that a 15-year-old and an 18-year-old could work side by side in the same job, and only one of them is entitled to compulsory super. It’s time to give these young Australians a fairer start.”
Currently, workers under the age of 18 are only eligible for compulsory Superannuation Guarantee payments from their employer if they work more than 30 hours per week for that employer, although some employers already voluntarily pay this.
Rest’s analysis showed significant benefits if all under 18 workers were eligible for compulsory super regardless of how many hours they worked.
- A typical 15-year-old Rest member could benefit from an estimated $3,400 extra in super by their 18th birthday, and an estimated $18,100 in additional super by retirement (in today’s dollars).
- A typical 16-year-old Rest member could benefit from an estimated $2,400 extra in super by their 18th birthday, and an estimated $12,900 in additional super by retirement (in today’s dollars).
- A typical 17-year-old Rest member could benefit from an estimated $1,300 extra in super by their 18th birthday, and an estimated $7,000 in additional super by retirement (in today’s dollars).
“Rest represents more than 1 million members under the age of 30 and we are determined to see reforms that help them achieve the best foundation for their future life,” Ms Doyle adds.
“We urge the Government to extend the Superannuation Guarantee to all workers under 18 who work less than 30 hours per week.
“Industry modelling shows this change could help close the gender super gap2, and our research confirms the reform has overwhelming support among our members.3
“We strongly encourage the Government to engage in a detailed consultation to consider the impact on employers and implement the change with a multi-year, staged rollout.”
Rest’s Pre-Budget Submission sets out 10 recommendations for Government, including 2 other priority reforms.
- Urgently legislate Tranche 2 of the Delivering Better Financial Outcomes (DBFO) reforms to enable affordable, accessible, clear and easy-to-understand financial advice for super fund members.
- Remove barriers to super funds being able to invest in members’ best financial interests, including: reforming the annual superannuation performance test, and removing and reclassifying stamp duty under ASIC Regulatory Guide 97, noting the inclusion of stamp duty can impact the attractiveness of certain investments (such as property including residential housing, agriculture and agribusiness, and infrastructure) relative to other asset classes.
About the analysis
The analysis was conducted from November 2025 to January 2026.
The analysis assumes the members will enter the workforce on their birthday and retire at age 67.
The 17-year-old Rest member in the analysis is assumed to work 14 hours a week on average, and 30 hours a week for 7% of the weeks in a year. This is in line with the findings of the Super Members Council in Guaranteeing a Super Start to Work: Paying Super Guarantee to all workers under 18 years of age, November 2024.
The 15-year-old is assumed to work 9 hours a week on average. The 16-year-old 11 hours a week on average.
The average weekly total cash earnings for non-managerial employees aged 17 and under is used as a base, with 2023 rates adjusted to 2025 rates, taken from Employee Earnings and Hours, Australia, May 2023, Australian Bureau of Statistics, January 2024.
An annual gross investment return of 7.25% is assumed, based on the annualised 10-year return for Rest’s Growth option, as at 31 October 2025. Investment returns are calculated after tax on investment income, and Growth’s investment fees and costs and transaction costs, but before the deduction of administration fees. Past performance is not an indicator of future performance.
Administration fees applied are the current Rest Super administration fees and costs of $1.50 per week, plus an asset-based fee of 0.10% pa of their account balance (the asset-based fee is capped at $600 pa). Other administration costs of 0.09% pa have not been included as these represent ‘Costs met from reserves’, and are deducted from the Fund’s reserves throughout the year and not directly from a member’s account.
Contributions are taxed at the relevant rate of 15%.
Real wage growth is assumed to be 3.7%, reflecting the assumptions in ASIC’s moneysmart Superannuation Calculator.
The analysis is illustrative only, based on reasonable assumptions but has limits. There can be materially different results if those assumptions are not correct or other risks and uncertainties arise. It should not be relied on for the purpose of making a decision in relation to a financial product. Estimates are rounded to the nearest $100.
1 Guaranteeing a Super Start to Work: Paying Super Guarantee to all workers under 18 years of age, November 2024, pages 6 and 8.
2 Closing the gender super gap: Pay super to all under-18 workers, Super Members Council, December 2025.
3 71% of Rest members said they supported making super payable to all workers under the age of 18, regardless of how many hours they work. Research conducted by Redbridge Group, on behalf of Rest, via an online survey of 1,007 Rest members aged 18 and above between 23 January and 6 February 2025. The data is weighted based on gender and age weights to reflect Rest’s membership profile.
About Rest
Established in 1988, Rest is one of Australia’s largest profit-to-member superannuation funds, with more than 2 million members and around $105 billion in funds under management as at 31 December 2025.
For more information, please visit our media centre or contact:
Michael Mills
Senior Manager, Communications – Media Relations
michael.mills@rest.com.au
m: 0428 499 722
Natalie Kitchen
Head of External Communications
natalie.kitchen@rest.com.au
m: 0439 046 442
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