Domestic Workers Miss Superannuation Contributions Due to 30-Hour Rule

Some domestic workers employed in private homes are not receiving employer superannuation contributions despite working full-time hours across multiple families. The law exempts employers from paying superannuation when a domestic worker such as a nanny, cleaner or housekeeper logs fewer than 30 hours a week with that employer.

A nanny in Melbourne who works up to 50 hours a week across two families said she has received no employer contributions for more than 20 years. "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," she said.

" The 30-hour threshold was originally introduced to prevent superannuation fund fees from eroding low-balance accounts. Protections on small balances have since been introduced, removing the original rationale.

Analysis from the Super Members Council shows nearly 40,000 domestic workers will be affected during the 2026–27 financial year, with each missing out on about $4,000 a year on average. The lost contributions total nearly $150 million nationwide. The council reported that the gap leaves affected workers with about $130,000 less in superannuation at retirement.

With women retiring with 25 per cent less superannuation than men on average, and 86 per cent of domestic workers being women, the rule widens an existing retirement savings gap. A second nanny said one family deliberately limited her to 29.5 hours a week to avoid the obligation.

She eventually raised her hourly rate to cover her own voluntary contributions after negotiations for employer payments were rejected.

for Removal of Threshold

The Super Members Council has called on the federal government to scrap the rule, which it described as outdated. The council stated that domestic workers perform essential paid work but are treated as second-class workers under the superannuation system.

"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," the council's CEO said. " Owners of payroll services for nannies said the rule creates a loophole that complicates efforts to provide proper employment rights.

One service operator noted that many families using their platforms already choose to pay superannuation voluntarily. A managing director of another payroll service said the law should be removed to professionalise the industry and reduce cash payments or contractor arrangements.

He noted that short-term or working-holiday workers might face added complexity but supported updating the rule. A spokesperson for federal Assistant Treasurer Daniel Mulino said the government was aware of the issue. The spokesperson stated that the government remained committed to ensuring the superannuation system provides Australians with dignity and security in retirement and continues to monitor workplace and superannuation laws.