A proposal from the Greens would remove the current exemption and require employers to pay superannuation to under-18 workers who work fewer than 30 hours per week.
According to the ARC, the change would increase employment costs for young workers and could reduce job opportunities for youth. CEO Chris Rodwell highlighted that the retail industry has provided millions of Australians with their first job.
"Businesses invest significant time, money and resources in training young people with little or no work experience," he said.
"If governments keep increasing the cost of employing young people without anything to offset it, the reality is that some businesses will choose to employ more experienced workers who require less training and supervision."
He cited record-low consumer confidence and ongoing cost pressures, warning that these factors could lead to higher prices, job losses, reduced investment, or business closures.
"Retailers are about to absorb a 4.75 per cent wage increase, higher junior pay rates, Payday Super affecting cashflow, rising freight and fuel costs, escalating retail crime, the debit card surcharge ban and a growing mountain of regulation," he said.
"Governments keep adding new costs, yet there are no productivity gains, no meaningful reduction in red tape and nothing to help businesses absorb them."
Senator Barbara Pocock, Greens spokesperson for finance, employment, and workplace relations, defended the proposal and expressed concern about young workers being excluded from superannuation. She added that around 93 per cent of young people work fewer hours due to school and study commitments, arguing they should not lose access to superannuation because they are studying.
"Under 18s pay taxes and contribute to our economy, so why shouldn't they receive super?" she asked.
"Whether they're 16 or 60 years old, every worker deserves super, and should receive the same financial rights as everyone else, whether part-time or full-time."
Pocock confirmed that the Greens will continue advocating for the proposal, citing equality of entitlements between young workers and other employees.
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