Saving for their retirement is probably the last thing on your children's minds when they first start working, but there is a good reason to get them signed up for a superannuation account early.
Most younger teens are not automatically eligible for superannuation payments from their employer, as workers aged under 18 must work more than 30 hours per week to be eligible for super.
This changes once they turn 18, when all workers must be paid 12% super regardless of the number of hours worked.
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Government money on the table for super
But just because they don't get paid super, doesn't mean there isn't a great reason to sign your children up for a super account.
This is because, as low-income earners, they will likely be eligible for a super co-contribution from the government if they make an after-tax contribution themselves.
There are some rules, including that, for 2026-27, they must earn less than $49,293 to receive the full $500 government contribution.
There is also the 10% eligible income test, which states that 10% or more of your total income must come from either employment-related activities or carrying out a business.
To be eligible for the full $500 contribution from the government, $1000 in non-concessional (after-tax) contributions must be made.
Compound interest works its magic
And while $500 might not sound like a lot, the impact on your child's retirement savings could be huge.
Using the government's Moneysmart website, I have calculated that $500 deposited into a 15-year-old's account will turn into $10,500 by the age of 60, assuming the initial deposit compounds at 7% per year.
And remember, this is calculated assuming just one year of contributions.
The Australian Taxation Office website says your children do not need to do anything to receive the payment, and can make smaller payments throughout the year.
As they say:
You don't need to make your personal contributions as a single lump sum – you can make payments throughout the financial year. We use the total amount you have contributed for the year to calculate the co-contribution. Your super fund can tell you how to make personal contributions, and it will need your tax file number before it can accept them.
The minimum contribution that can be made is $20, and the government has a calculator to help people figure out how much they will be paid.
