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CatsRLife0709(I'm new)I'm new
15 May 2026

Hi, I'm 16 years old and have just gotten my first job. I am really new to just absolutely everything!


Background info:


As I just told you, I'm under 18 and I work far less than 30 hours in a week, and from my understanding, my employer does not have to make any contributions to my super. I have also already made my own super account with Australian Retirement trust and from what I know, they're pretty low fee?? If it helps, I work casual in the fast food industry.


I'd just really like some help in deciding if I should give my employer my super stuff for them to make contributions from my earned money to my super balance, or if it just isn't worth it because I most likely don't earn enough and it might get eaten up by fees I don't know about. Or, is it more worthwhile to make super contributions myself? OR should I just absolutely not worry about super contributions at all until I am out of school and working more hours?

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94 views
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All replies

15 May 2026

You are correct - under 18 they don't need to pay you super if you work less than 30 hours a week.


I love that you are starting to think about super now - I am trying to get my kids to as well, because the compounding effect of small amounts between now and their retirement can really add up!


To get you started on understanding super:


1) The good thing about the superannuation fee structure that is in place now is that it prevents low balance super accounts being eaten away by fees - so fees are capped at 3% for super accounts with a balance of less than $6,000. Sometimes these fees are charged initially, but then rebated at the end of the year. So your super should always be increasing, as long as that year's earnings are more than 3%. So I would suggest you don't let fees put you off investing in super PROVIDED, your have checked your super account online to see whether there is a default insurance option selected. Obviously you can make your own choices about whether or not you need life and income protection insurance at your age, but I have recommended to my 19 and 17 year olds that they don't have it just yet as it will just chomp through their super balances.


2) When you are a low income earner, there are a few ways to get some little bonuses with your super. One of which is if you contribute $1,000 to your super now and are a low income earner, the government will put an extra $500 in your super. Then that $1,500 will sit compounding until you retire OR, you could elect to take the original $1,000 plus the earnings on that amount out when you buy your first home and put it towards the deposit (see point 4 below). Either way, the freebie $500 will sit there compounding as a nice bonus when you are 60-65. And if you do that every year you are a low income earner, it adds up pretty well. To read about the super co-contribution, and make sure you are eligible, start here: Super co-contribution | Australian Taxation Office


Just by way of example, if you did this $1,000 contribution and got the $500 co-contribution for 6 years that you are a low income earner (2 of high school and 4 of uni as a guess), then using the average rate of return on super, you would be looking at that $6,000 in initial contributions being around $150,000 if you retire at 65. Not bad! Obviously that's just estimates and assumes a round rate of return of 8% in super, but gives you an idea of how compounding can really help investments over a long period of time.


3) On top of the $1,000 contribution above (that you wouldnt claim a tax deduction for and would aim to get the bonus $500 co-contribution for), if your part-time job ends up paying more than $18,200 in the future, such as when you are at uni and working a higher paid job or more hours, then you will pay tax at 14% on the money between $18,200 and $45,000. But if you are thinking about putting money aside for super when that happens, you could make what is known as a "concessional contribution" and claim a tax deduction for that amount. Normally, earnings in super are taxed at 15%, which means that there isn't any benefit in making that contribution for the tax deduction, but for low income earners, there is the "Low income super offset" which means that the 15% tax paid in the super fund is refunded to the super balance. So this might be something you think about in the future too - tax saved and you can potentially then access it for a house deposit when you are ready (See 4 below)

Low income super tax offset | Australian Taxation Office


4) the First Homeowners Super Saver Scheme is a decent savings scheme for people who would be buying their first home and want to access super to help with the deposit. Its convoluted, so you would need to educate yourself about it, but basically the amounts you might contribute to super under 2 & 3 above, can be withdrawn again to go towards your house deposit down the track. First home super saver scheme | Australian Taxation Office


Anyway, I realise this is WAY too much information for now, and much of this might be more relevant in a few years when you are earning more as a uni student and saving your money for a house rather than a car (which is probably your first thought right now), but start to learn about it all now, so you are ready when you do want to think about it and your 65 year old self and first home buying self will probably appreciate it!

CatsRLife0709(I'm new)I'm new
15 May 2026

Thank you so much for that reply! I have also heard about that co-contribution that you mentioned, and it is nice to learn more about it. I think I'll definitely consider that path to go about starting my super. Again, thanks for the reply and I will definitely be looking more into the other things you mentioned!

CatsRLife0709(I'm new)I'm new
15 May 2026

Also, I have looked more into my super account and I do not have any insurance or other fees applied to my account! Thanks again, i feel a lot more confident with this stuff

RachelATO(Community Moderator)Community Moderator
15 May 2026

Hi @CatsRLife0709,

 

These are great questions and @TaxTalk1234 has provided helpful info to think through.

 

As you've realised, because you’re under 18 and working less than 30 hours a week, your employer doesn’t have to pay super right now, even if you give them your super details.

 

You can add money to your super yourself if you want though, but you don’t have to. If you want to dig deeper, you could have a look at our info on super basics and growing your super.


We also have some specific information when you're new to tax and super to help explain how it all works.

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Should I provide my super details if I’m under 18 and working casually? | ATO Community