The Australian Retail Council (ARC) has warned the federal government against backing the Greens’ push to remove the long-standing superannuation exemption for under-18 workers who work fewer than 30 hours a week.

ARC CEO Chris Rodwell says retailers are already preparing for significantly higher labour costs following the Fair Work Commission’s decision to increase junior pay rates, with the latest proposal threatening to further increase the cost of employing young people. 

“Retail has given millions of Australians their first job. Businesses invest significant time, money and resources training young people with little or no work experience,” he says. 

“The Fair Work Commission has already made employing young people less competitive. We cannot afford to make it even more expensive. 

“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. That doesn’t help teenagers looking for their first opportunity and it doesn’t help Australia’s future workforce.” 

Mr Rodwell says ASIC figures show retail insolvencies are running almost 20% higher than the same period last year, making retail one of the hardest hit major industries. 

“Consumer confidence is still near record lows and retailers are doing everything they can to avoid passing higher costs on to customers,” he says. 

“Businesses can only absorb so much before something has to give. That means higher prices, fewer jobs, less investment or more businesses closing their doors. 

“Retail employs 1.4 million Australians. Small businesses are the backbone of our economy and the heart of communities right across the country.”