Super push for under-18s ‘risks making first jobs harder to find’
- Proposals to extend superannuation to workers under 18 are intended to boost long-term retirement savings but may create unintended consequences for youth employment.
- Small business groups warn the added cost and administrative burden could discourage employers from hiring younger workers, reducing entry-level job opportunities.
- Critics argue policymakers must balance retirement policy goals with the need to protect pathways into the workforce for teenagers gaining their first job experience.
A proposal to remove the superannuation exemption for under-18 employees working fewer than 30 hours a week could make it harder for young Australians to secure their first job, according to the Australian Retail Council (ARC).
The industry body said retailers are already preparing for higher labour costs following the Fair Work Commission’s decision to increase junior pay rates, with the proposed superannuation changes adding further pressure to businesses.
“Businesses invest significant time, money, and resources in training young people with little or no work experience,” said ARC CEO Chris Rodwell.
“The Fair Work Commission has already made employing young people less competitive. We cannot afford to make it even more expensive.”
Rodwell said increasing the cost of employing young workers without offsetting measures could encourage businesses to hire more experienced employees instead.
“If governments keep increasing the cost of employing young people without anything to offset it, the reality…
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Original article by "Inside Small Business". Photo by Pexels.
