Rohini chiluvuri, 11 JUL 2022
Under 18s receive super only when they work 30 hours
THIS ARTICLE APPLIES TO AUSTRALIA ONLY
Let's walk through an example to understand the legislation.
Isabella worked 28 hours last week at $24 per hour. So, she would earn $672 gross pay with tax of $73 (assuming it's the 2022-23 financial year, resident status, TFN provided, no student loans) and $599 net pay (cash in hand). On top of that, should Isabella receive 10.5% super? Because Isabella did not work a minimum of 30 hours, the ATO ruling is that she does not receive any super.
But what if Isabella has a second job with a different employer, and she worked 10 hours in this job in the same week, which brings her weekly total to 38 hours. Would she get super? No, Isabella misses out on super because the 30 hour rule only applies to the hours worked for one employer. So, in this case Isabella does not qualify for super.
But what if Isabella completed 38 hours in the week for just the one employer? Isabella would receive $95.80 super (based on 10.5% of 38 hours x $24 per hour).
Also, be aware that some weeks Isabella might be above the threshold, and other weeks below. The responsibility is on the payroll officer (which in small business is usually the owner or bookkeeper) to cast an eye over the pay record (before processing) and either include or exclude super.
If you want to learn even more about super entitlements for under 18s, check out this article on the ATO website
If you liked this article, can I ask you to please share on social media and subscribe to my mailing list below. Thank you, it means so much to me to have people read my articles. Have a great day, Rohini.
Let's walk through an example to understand the legislation.
Isabella worked 28 hours last week at $24 per hour. So, she would earn $672 gross pay with tax of $73 (assuming it's the 2022-23 financial year, resident status, TFN provided, no student loans) and $599 net pay (cash in hand). On top of that, should Isabella receive 10.5% super? Because Isabella did not work a minimum of 30 hours, the ATO ruling is that she does not receive any super.
But what if Isabella has a second job with a different employer, and she worked 10 hours in this job in the same week, which brings her weekly total to 38 hours. Would she get super? No, Isabella misses out on super because the 30 hour rule only applies to the hours worked for one employer. So, in this case Isabella does not qualify for super.
But what if Isabella completed 38 hours in the week for just the one employer? Isabella would receive $95.80 super (based on 10.5% of 38 hours x $24 per hour).
Also, be aware that some weeks Isabella might be above the threshold, and other weeks below. The responsibility is on the payroll officer (which in small business is usually the owner or bookkeeper) to cast an eye over the pay record (before processing) and either include or exclude super.
If you want to learn even more about super entitlements for under 18s, check out this article on the ATO website
If you liked this article, can I ask you to please share on social media and subscribe to my mailing list below. Thank you, it means so much to me to have people read my articles. Have a great day, Rohini.
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Rohini Chiluvuri
about the author
Rohini works for one of the world's largest companies (you probably used their service during the pandemic) where she is the Head of Payroll for Australia, New Zealand, and several countries in Asia. Rohini is a member of the Australian Payroll Association.
Please remember that Rohini is sharing her personal thoughts and opinions, not those of her employer. Articles may contain errors and omissions. The reader is advised to seek independent advice.
Rohini moonlights as a payroll blogger because she understands small business owners don't have the qualifications, skills, training, experience, and legal resources of corporations. To give back to the community, she has released this series of articles which hopefully make the complex and confusing world of payroll more accessible to Aussie business owners, so they can meet the primary goal of the payroll function which is to ensure each and every employee receives precisely the salary, wages, overtime, allowances, superannuation, and bonuses they are entitled to within the rules of their legal jurisdiction.
Please remember that Rohini is sharing her personal thoughts and opinions, not those of her employer. Articles may contain errors and omissions. The reader is advised to seek independent advice.
Rohini moonlights as a payroll blogger because she understands small business owners don't have the qualifications, skills, training, experience, and legal resources of corporations. To give back to the community, she has released this series of articles which hopefully make the complex and confusing world of payroll more accessible to Aussie business owners, so they can meet the primary goal of the payroll function which is to ensure each and every employee receives precisely the salary, wages, overtime, allowances, superannuation, and bonuses they are entitled to within the rules of their legal jurisdiction.
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