Employers Don't Need to Pay Some Workers Super Due to a Loophole

Jess Renn says changing the super laws would protect nannies.

In short:

Domestic workers, including nannies, don't get super if they work less than 30 hours a week.

This leaves thousands of mainly female workers with $130,000 less in super.

What's next?

Industry stakeholders want the government to scrap this law, calling it outdated and discriminatory.

Jess Renn hasn't been paid super for over two decades despite working full-time hours as a nanny.

She works up to 50 hours a week, usually for two families.

She said, 'I've worked 30 hours with one family and 20 hours with another, which are full-time hours in any other job.'

But because she works for multiple clients, it's an issue.

Under current laws, domestic workers in private homes don't get super if they work less than 30 hours a week.

The 30-hour cap was introduced to prevent super fund fees from eroding low-balance accounts.

Now, there are fee protections on small superannuation balances.

Jess Renn hasn't been paid super for over two decades.

When she asked her employers about super, they said they weren't legally obliged to pay it.

She negotiated with one family to put her pay rise into her super instead.

She realized she has only 25% of the super that others her age have.

The Super Members Council says nearly 40,000 domestic workers will be affected, missing out on $4,000 a year on average.

The lost super adds up to $150 million nationwide.

The Super Members Council calls for a change to regulations.

The council wants the government to scrap the outdated law, which could leave domestic workers with $130,000 more in super.

This change would help reduce the gap between men's and women's super, as 86% of domestic workers are women.

Some domestic workers in private homes miss out on super.

The CEO of the Super Members Council says domestic workers are treated as second-class workers when it comes to super.

Fixing the outdated laws would help close the gender super gap and boost retirement savings.

Workers try to catch up by making voluntary contributions.

Another nanny, Ellen, said one family made sure she never worked more than 30 hours a week.

The Super Members Council calls for the government to scrap the outdated law.

Ellen's family would cut her hours to avoid paying super.

Ellen tried to negotiate super with the family but was rejected.

She said, 'They bluntly said they didn't have to pay me super because they kept my hours under 30.'

Ellen has missed out on years of employer contributions and compounding interest.

She's paying $50 a week into her super to catch up.

The 30-hour cap was to prevent super fund fees from eroding low-balance accounts.

There's a power imbalance between workers and families.

Lauren Brown created a payroll service to support nannies.

She said the rule leaves a loophole where people don't have to pay super.

Lauren Brown says it's hard for nannies to prepare for their future.

The super law exacerbates the power imbalance between families and nannies.

Lauren Brown said, 'When the domestic super rule is the reason why families can say no, it makes negotiation harder for workers.'

Women already miss out on super due to maternity leave and raising children.

Mark Hudson says he can see both sides of the issue.

Mark Hudson says nannies are denied important employment rights.

He said some nannies work only a few hours a week.

Adding super for these workers would add cost and complexity for families.

Mark Hudson thinks the law should be scrapped because it contributes to a wider issue.

He wants to give nannies proper employment rights and professionalize the industry.

Both Lauren Brown and Mark Hudson say the law is outdated.

Many families using their platforms already choose to pay their nannies super.

The government is aware of the issue and wants to ensure the super system provides dignity and security in retirement.

The government monitors workplace and superannuation laws to ensure they remain fit for purpose.

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Employers Don't Need to Pay Some Workers Super Due to a Loophole

Jess Renn says changing the super laws would protect nannies.

In short:

Domestic workers, including nannies, don't get super if they work less than 30 hours a week.

This leaves thousands of mainly female workers with $130,000 less in super.

What's next?

Industry stakeholders want the government to scrap this law, calling it outdated and discriminatory.

Jess Renn hasn't been paid super for over two decades despite working full-time hours as a nanny.

She works up to 50 hours a week, usually for two families.

She said, 'I've worked 30 hours with one family and 20 hours with another, which are full-time hours in any other job.'

But because she works for multiple clients, it's an issue.

Under current laws, domestic workers in private homes don't get super if they work less than 30 hours a week.

The 30-hour cap was introduced to prevent super fund fees from eroding low-balance accounts.

Now, there are fee protections on small superannuation balances.

Jess Renn hasn't been paid super for over two decades.

When she asked her employers about super, they said they weren't legally obliged to pay it.

She negotiated with one family to put her pay rise into her super instead.

She realized she has only 25% of the super that others her age have.

The Super Members Council says nearly 40,000 domestic workers will be affected, missing out on $4,000 a year on average.

The lost super adds up to $150 million nationwide.

The Super Members Council calls for a change to regulations.

The council wants the government to scrap the outdated law, which could leave domestic workers with $130,000 more in super.

This change would help reduce the gap between men's and women's super, as 86% of domestic workers are women.

Some domestic workers in private homes miss out on super.

The CEO of the Super Members Council says domestic workers are treated as second-class workers when it comes to super.

Fixing the outdated laws would help close the gender super gap and boost retirement savings.

Workers try to catch up by making voluntary contributions.

Another nanny, Ellen, said one family made sure she never worked more than 30 hours a week.

The Super Members Council calls for the government to scrap the outdated law.

Ellen's family would cut her hours to avoid paying super.

Ellen tried to negotiate super with the family but was rejected.

She said, 'They bluntly said they didn't have to pay me super because they kept my hours under 30.'

Ellen has missed out on years of employer contributions and compounding interest.

She's paying $50 a week into her super to catch up.

The 30-hour cap was to prevent super fund fees from eroding low-balance accounts.

There's a power imbalance between workers and families.

Lauren Brown created a payroll service to support nannies.

She said the rule leaves a loophole where people don't have to pay super.

Lauren Brown says it's hard for nannies to prepare for their future.

The super law exacerbates the power imbalance between families and nannies.

Lauren Brown said, 'When the domestic super rule is the reason why families can say no, it makes negotiation harder for workers.'

Women already miss out on super due to maternity leave and raising children.

Mark Hudson says he can see both sides of the issue.

Mark Hudson says nannies are denied important employment rights.

He said some nannies work only a few hours a week.

Adding super for these workers would add cost and complexity for families.

Mark Hudson thinks the law should be scrapped because it contributes to a wider issue.

He wants to give nannies proper employment rights and professionalize the industry.

Both Lauren Brown and Mark Hudson say the law is outdated.

Many families using their platforms already choose to pay their nannies super.

The government is aware of the issue and wants to ensure the super system provides dignity and security in retirement.

The government monitors workplace and superannuation laws to ensure they remain fit for purpose.

Promotion

Top Stories

Topic: Housing Policy

Analysis by Laura Tingle

LIVE

Topic: Weddings

Analysis by Sean Rubinsztein-Dunlop

Top Stories

Topic: Housing Policy

Analysis by Laura Tingle

LIVE

Topic: Weddings

Analysis by Sean Rubinsztein-Dunlop

Just In

Topic: Health

Topic: World Politics

Topic: Aboriginal Language

Topic: Sculpture