Superannuation Guarantee for people under 18

Superannuation Guarantee, under age 18, $450, part-time, 30 hours per monthThere are several exclusions from the requirement to pay superannuation guarantee contributions. The most well-known is the $450 monthly threshold. However superannuation guarantee contributions are also restricted based on age. People under 18 years of age have to meet additional criteria in order to be entitled to superannuation guarantee contributions.

Section 28 of the Superannuation Guarantee (Administration) Act 1992 says that :

Salary or wages paid to a part-time employee who is under 18 are not to be taken into account for the purpose of making a calculation under section 19.

So if an employee is under 18 and works part-time, they are not entitled, under the SG legislation, to superannuation guarantee contributions.

So what is part-time? Section 6 of the Super Guarantee Act says that:

“part-time employee ” means a person who is employed to work not more than 30 hours per week.

With the minimum $450 per month threshold, and based on the minimum wage, superannuation guarantee would otherwise apply at a little over 26 hours per month for people aged under 18. The current national minimum wage is $17.29 per hour, excluding the loading for casual employees. If we assume a 17 year old, working 10 hours part-time per week, this would be $691.60 in a four week month.

In other words, the superannuation guarantee rules mean young people who would otherwise be entitled to superannuation guarantee are denied it solely based on their age.

Previously superannuation guarantee contributions did not need to be made for people over age 70, however this was repealed. For some reason the restriction for younger Australians remains.

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