The Australian Retail Council has warned the Federal Government against backing the Greens' push to remove the long-standing superannuation exemption for under-18 workers who work fewer than 30 hours a week.
This comes after Treasurer Jim Chalmers reportedly failed to either reject or accept the move.
The ARC argued that retailers are dealing with rising business costs, which include the Fair Work Commission’s junior pay rate rises that come into effect today, as well as purported risks for young people to be snubbed for future jobs over older workers.
ARC CEO Chris Rodwell said retailers were already preparing for significantly higher labour costs following the FWC's decision, with the latest proposal threatening to further increase the cost of employing young people.
"Retail has given millions of Australians their first job,” Rodwell said. “Businesses invest significant time, money and resources training young people with little or no work experience.
"If governments keep increasing the cost of employing young people without anything to offset it, the reality is that some businesses will choose to employ more experienced workers who require less training and supervision.
“That doesn't help teenagers looking for their first opportunity, and it doesn't help Australia's future workforce."
Greens’ spokesperson for finance, employment and workplace relations, Senator Barbara Pocock, disagrees. Pocock said cost-of-living is up, but wages haven’t kept the same pace.
"This is deliberate exclusion of super for young people,” she said. “Robbing 515,000 young workers an estimated $405 million in super contributions in 2025-26 alone.
"A 16-year-old stacking shelves at Coles or Woolies or flipping burgers at McDonald’s earns every dollar of their wage the same way an adult worker does. Their labour has value.
“The majority of young people (93 per cent) work fewer than 30 hours a week because of school and study commitments, meaning they miss out on super. That’s unfair. Young people shouldn’t be penalised for going to school or studying.”
Rodwell also pointed out that businesses are facing surging costs, adding that small businesses simply can’t print more money.
"Retailers are about to absorb a 4.75 per cent wage increase, higher junior pay rates, Payday Super affecting cashflow, rising freight and fuel costs, escalating retail crime, the debit card surcharge ban and a growing mountain of regulation,” Rodwell said. “Governments keep adding new costs, yet there are no productivity gains, no meaningful reduction in red tape and nothing to help businesses absorb them."
Rodwell pointed to ASIC figures that show retail insolvencies were running almost 20 per cent higher than the same period last year, making retail one of the hardest hit major industries.
"Consumer confidence is still near record lows, and retailers are doing everything they can to avoid passing higher costs on to customers,” he said.
"Businesses can only absorb so much before something has to give. That means higher prices, fewer jobs, less investment or more businesses closing their doors.”
Pocock argued that young people are working hard, paying tax and doing the right thing. “They deserve every dollar they've earned, including their super,” she said.
“Under 18s pay taxes and contribute to our economy, so why shouldn’t they receive super?
“Whether they’re 16 or 60-years-old, every worker deserves super, and should receive the same financial rights as everyone else whether part-time or full-time.”
Pocock said the Greens will continue to fight for young workers.
The Senate is expected to decide and debate on this move this week.