The Australian Greens are seeking to expand compulsory superannuation entitlements for more than 500,000 teenage workers by removing an exemption that currently applies to employees under 18 who work fewer than 30 hours each week.

The proposal has become one of the Greens’ major workplace policy priorities as Parliament considers broader superannuation reforms. The party argues that young Australians working part-time should receive the same retirement benefits as other employees regardless of their age or weekly hours.

Under Australia’s current superannuation rules, most employees under the age of 18 are only entitled to compulsory employer super contributions if they work at least 30 hours during a week. The Greens argue this exemption disproportionately affects school students employed in supermarkets, retail stores, cafés, restaurants and fast-food outlets, where shorter part-time shifts are common.

Greens Senator Barbara Pocock has introduced a Senate disallowance motion seeking to remove the exemption. The party says the existing rule excludes around 515,000 young workers from receiving compulsory superannuation and argues those employees should receive retirement contributions on the same basis as adult workers.

Treasurer Jim Chalmers has acknowledged that the issue deserves further discussion but has stopped short of committing the Government to changing the current rules. He said Labor’s immediate priority has been implementing Payday Super, which now requires employers to pay super contributions at the same time wages are paid, while indicating he remains open to future consultation with workers, unions, business groups and the superannuation sector.

Supporters of the Greens’ proposal, including the ACTU and several superannuation funds, argue that beginning retirement savings earlier can substantially improve long-term balances because of compound investment returns. They also contend that excluding younger workers from compulsory super creates unequal treatment for employees performing the same work as adults.

Business organisations have expressed concern about the proposal, warning that removing the exemption could increase employment costs and administrative obligations, particularly for employers that rely heavily on school-aged staff. Some industry groups argue the additional costs could affect hiring decisions or reduce opportunities for young people entering the workforce.

The proposal comes as Australia continues broader reforms to its superannuation system. Payday Super, which commenced on 1 July, is designed to reduce unpaid superannuation by requiring contributions to be paid alongside employees’ wages rather than quarterly. The debate over teenage workers focuses on whether the existing age-based exemption should remain alongside those wider reforms.

The Greens’ motion will be considered by the Senate. Until any legislative or regulatory changes are approved, the existing exemption for employees under 18 working fewer than 30 hours per week remains in force. The outcome of the parliamentary debate will determine whether Australia’s compulsory superannuation rules are expanded to include those workers.