What you should know about superannuation for under 18-year-olds

Superannuation, also known as super, is money employers will deposit from your pre-tax income into a nominated superannuation account. 

This money will then be available for you to live on when you retire. The money deposited is then invested by your superannuation fund manager so that it grows, giving you more money for your retirement. The more money you can deposit, the more money you’ll have for retirement. 

One important part of superannuation is that the money deposited in the account, and any profits from the investments, aren’t accessible right away. You can only withdraw the money from your super account under specified circumstances. Most commonly, you won’t access it until you retire you reach your “preservation age”.  

There are some significant circumstances where you may access the money before this time, but early access to super is rare.

Employers are obligated to pay super as part of the salary package for most employees, regardless of how many hours they work or how much they earn in a calendar month. However, superannuation rules for under-18-year-olds are slightly different.

If you're under 18 and starting your first job or a new job, you will still be entitled to super. But there is some difference in the superannuation guarantee for under-18-year-olds. 

The ATO stipulates that employers are required to pay super to any employee who is under 18 and has worked at least 30 hours per week, irrespective of how much you earn. Under these circumstances, your employer is obligated to contribute a percentage of your regular wages to a superannuation account for you.

Examine your payslip to ensure that you’re receiving the correct amount of super. Your employer, by law, is required to provide details of the amount of super you’re paid and the date it was deposited into your account. You can also check your super balance online or over the phone to ensure the money is being deposited into the right account.

If you've discovered you’re not getting paid super and should be or not getting paid the correct amount of super, talk to your employer. If that doesn't work, contact the ATO on 13 10 20, and they should assist you in recovering the missing super from your employer. 

As you go through different jobs, you may also accumulate multiple super accounts. It’s important to note any new accounts and consider consolidating your super funds into a single account to save money on fees. If you're unsure if you have multiple super accounts, you can check with the ATO. They should have records of any superannuation accounts in your name. This would include any you might have forgotten about. 

You can either fill out the ATO's Searching for Lost and Unclaimed Super Form and send it back to them. You can also call the dedicated phone line at 13 28 65, supply a range of personal information and get help that way. Or you can apply for a myGov account online, link it to the ATO's online services and look for lost super. Once you set up an online account with the ATO linked to MyGov, you can see all of your super accounts.

It’s important to always keep an eye on your super account as you grow through your career. You may find that some employers have preferred super funds they like their employees to sign up to, and they may sign you up on your behalf. Remember that you’re not obligated to use your employer's preferred super account. 

Instead, you could look at a range of superannuation funds, find one you feel comfortable using, and keep that with you throughout your career. All you need to do is let your employer know they need to direct your super guarantee payments to your preferred super provider. This can be done by requesting a super choice fund form from your employer or downloading one from the ATO website. 

As a young worker, your income is likely on the lower side for now, and you may be eligible for government contributions to your superannuation fund. For instance, if you earn less than $37,000 per year, the government may contribute up to $500 to your super account each year. And if you earn less than $51,813 per year, you may be eligible for government co-payments for any personal contributions. Co-contributions are only available for after-tax contributions you make into your super account. 

Your superannuation is your money, and it will be there for you in the future. If you start building it now, it should grow steadily throughout your working life. This continued growth will help you build wealth that you can enjoy when you’re ready to retire.