Call for Change in Superannuation Law
The Super Members Council (SMC) urges the Australian Government to abolish outdated laws denying domestic workers in private homes the right to superannuation. This exclusion impacts cleaners, housekeepers, and nannies, most of whom are women, resulting in a loss of $150 million annually.
Currently, domestic workers employed for less than 30 hours weekly by the same employer are not eligible for superannuation. This legislation affects about 37,000 workers, with 86 per cent being women, who lose nearly $4,000 each in super contributions every year.
Misha Schubert, CEO of the Super Members Council, stated, “Cleaners, housekeepers and nannies are doing essential, paid work, yet the law still treats them as second-class citizens when it comes to super, and that burden falls overwhelmingly on women.”
Impact on Retirement Savings
The exclusion significantly contributes to the gender super gap, undermining the universality of Australia’s retirement system. Initially, the exclusion aimed to prevent fees from eroding low-balance super accounts, but current fee protections make this reason obsolete.
Eliminating the exclusion could result in a typical part-time domestic cleaner retiring with over $130,000 extra in super, increasing retirement income by about $4,500 annually, and reducing reliance on the Age Pension.
The Council has also advocated for similar changes regarding workers under 18, who are excluded from super if working less than 30 hours weekly. This affects 515,000 teenage workers, denying them $405 million in super contributions this year alone.
A Council report indicates that removing the 30-hour threshold would help close the gender super gap. A teenage girl with guaranteed super could have nearly $2,500 more by age 18, which could grow to $11,000 more by retirement.
In 2026-27, around 37,000 domestic workers are predicted to be affected by the exclusion, with women missing out on approximately $126 million in super contributions that year alone. This outdated exclusion needs addressing to ensure equality in retirement savings.
The Senate Economics Legislation Committee is currently investigating the laws leading to the exclusion of part-time domestic workers. The Council recommends that the government amend the regulations to ensure domestic work is treated equally to other forms of employment.
The Council previously pushed for the abolition of this law concerning under-18s, who also face exclusion if working less than 30 hours weekly. According to the Council’s analysis, 515,000 teenage workers nationally will miss out on a combined $405 million this financial year. The existing age-based minimum-hours rule means most teenage workers, especially young women more likely to work part-time, are not yet paid super on their wages. Women currently retire with 25 per cent less super than men, and this gap can start from their very first day at work.
Last updated: 15 April 2026, 10:04 am
