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🇦🇺 Australia /Economy & Trade

Nannies Working Without Superannuation Due to 'Discriminatory' Law

From ABC Australia · (1h ago) English Critical tone

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • Nannies working in private homes in Australia are missing out on superannuation (retirement savings) due to a law that requires nannies to work less than 30 hours a week to receive it.
  • This 'discriminatory' law affects nearly 40,000 domestic workers, predominantly women, who lose an average of $4,000 annually.
  • The Super Members Council is urging the government to scrap the outdated law, which they argue would help close the gender superannuation gap and boost retirement savings.

In Australia, a significant number of domestic workers, primarily nannies, are being systematically denied essential superannuation contributions due to an outdated and arguably discriminatory law. Jess Renn, a Melbourne nanny, exemplifies this issue, having worked full-time hours for over two decades without receiving superannuation. Her situation, working across multiple families to reach up to 50 hours weekly, highlights how the current legislation, which mandates a 30-hour weekly threshold for superannuation eligibility in private homes, disproportionately affects dedicated workers.

I've worked [a maximum of] 30 hours [with] one family and 20 hours [with] another family, so that's where it has greatly affected me because [in] any other job, those are full-time hours.

— Jess RennExplaining how working for multiple families prevents her from meeting the 30-hour threshold for superannuation.

Analysis from the Super Members Council (SMC), a prominent body representing profit-to-member super funds, reveals the staggering scale of this problem. An estimated 40,000 domestic workers are expected to miss out on approximately $4,000 each year during the 2026-27 financial year, accumulating to a national loss of nearly $150 million. This oversight not only impacts individual retirement security but also exacerbates the existing gender superannuation gap, as 86% of these domestic workers are women.

But because I work across multiple clients, it then becomes an issue.

— Jess RennDescribing the specific problem caused by the current superannuation law for nannies.

The SMC is leading the charge, calling on the federal government to abolish this 'outdated and discriminatory' law. They argue that such a change would not only provide domestic workers with an estimated $130,000 more in their retirement funds but also actively work towards closing the gender gap in retirement savings. As SMC CEO Misha Schubert stated, 'Domestic workers are doing essential paid work, yet the system still treats them as second-class workers when it comes to superannuation, and that burden falls overwhelmingly on women.' This situation demands urgent attention to ensure fairness and adequate financial security for a vital segment of the workforce.

With one long-term family, I negotiated instead of a pay rise, I would salary sacrifice my pay rise into my super.

— Jess RennDetailing a personal strategy to compensate for the lack of mandatory superannuation contributions.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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