By Ross Heron | CEO, Australian Payroll Association
A proposed Bill could extend compulsory superannuation to more young workers. Here’s what employers and payroll teams need to know.
Australia’s payroll rules continue to evolve. Following the introduction of Payday Super on 1 July 2026, another proposed change is now before Parliament.
The Superannuation Legislation Amendment (Fair Super for Young Workers) Bill 2026 could extend compulsory superannuation to more employees under 18.
The Bill has not become law. Here’s what the proposal means and why payroll professionals should pay attention.
What is proposed?
Currently, employees under 18 generally qualify for compulsory employer super contributions only if they work more than 30 hours in a week. The Bill, introduced by Australian Greens Senator Barbara Pocock, proposes removing this age-based hours restriction.
If passed, more young workers who currently miss out because they work 30 hours or fewer each week could become eligible for compulsory super.
The Super Members Council has estimated that young workers miss out on around $411 million in super contributions each year under the current arrangements. The Greens have also cited an estimate of approximately 530,000 young workers who could benefit from reform. These are estimates, not guaranteed outcomes of the proposed legislation.
Why does this matter for payroll?
If the Bill passes, employers and payroll providers may need to review how their systems identify eligible employees and calculate super contributions.
Four areas deserve attention:
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Eligibility rules: Payroll systems may need updated settings to remove the under-18 hours threshold.
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Employee data: Employers need accurate dates of birth, employment details and superannuation fund information.
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System testing: Changes may affect payroll calculations, integrations, reporting and payment processes.
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Provider readiness: Employers should understand what their payroll software provider or outsourced payroll partner would need to change.
The work involved will depend on the employer's workforce, systems and existing controls.
Could implementation be challenging?
The Bill proposes to commence the day after it receives Royal Assent, without a dedicated transition period. The Business Council of Australia has raised concerns about implementation costs, system changes and the time employers would have to prepare.
Digital Service Providers Australia New Zealand (DSPANZ), which represents the business software sector, broadly supports the policy objective but has called for clear transitional arrangements and at least 12 months to implement the changes if the reform proceeds. Their positions differ, but both highlight an important practical issue: employers and software providers need sufficient time to prepare for changes that affect payroll systems and processes.
What should employers do now?
There is no need to change payroll settings solely because of this proposal. However, employers can take a few practical steps now:
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Check your workforce. Identify employees under 18, particularly casual and part-time workers.
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Review your payroll rules. Understand how your system currently determines superannuation eligibility.
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Talk to your provider. Ask what changes and testing may be required if the Bill passes.
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Monitor developments. Follow the parliamentary process before making implementation decisions.
The Bill has been referred to the Senate Economics Legislation Committee, which is due to report on 17 November 2026.
The takeaway
Payroll compliance is an ongoing responsibility. Even a targeted legislative change can affect employee data, system configuration, integrations and controls.
For payroll professionals, the priority is to understand the proposed change, assess potential impacts and be ready to respond when the legislative position becomes clear.
Stay informed. Stay prepared. Pay with Confidence.
