The Business Council of Australia (BCA) welcomes the opportunity to make a submission on the Superannuation Legislation Amendment (Fair Super for Young Workers) Bill 2026 (the Bill). The BCA opposes the Bill and recommends that it not proceed. Further consultation and analysis are required to properly understand the impact of the proposed changes on young workers and employers. At present, no compelling case for change has been established.
The proposal would extend compulsory superannuation to all workers under 18, regardless of hours worked. The BCA is concerned the proposal is not informed by a proper assessment of the measure’s net long-term retirement benefit and any near-term labour market effects, or of the cumulative costs and compliance pressures facing employers from payday super, increases in applicable rates of pay and other recent reforms.
The BCA is particularly concerned about:
- Young people’s access to employment: Any unintended consequences for young people’s access to first jobs and additional shifts should be properly assessed. Any reduction in early employment opportunities may adversely affect young people’s job readiness, future employability and lifetime earnings.
- The net retirement benefit for young workers: A broader evidence base is needed, including research into how young workers weigh their immediate income needs and job opportunities against retirement savings. Consideration should also be given to the true net retirement benefit for workers with low earnings or short periods of employment, taking account of contributions tax and fees.
- Implementation and compliance: The Bill would commence the day after Royal Assent, with no dedicated transition period. Employers need adequate time to update and test systems and obtain fund details for newly eligible employees, reducing the risk of contribution errors, delayed payments and subsequent remediation.
The BCA recommends further analysis and consultation with affected workers, employers, unions and the superannuation sector to establish whether reform is warranted, taking full account of the measure’s net long-term retirement benefit, any near-term labour market effects, and the cumulative costs and compliance pressures that recent and forthcoming reforms place on employers.