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People Management Australia

Employing young workers in Australia

Mellow Editorial·5 min read

Reviewed by Mellow Editorial Team, HR & payroll content team

Employing a young worker in Australia means the same core legal obligations apply as for any employee — award rates, superannuation, tax withholding and the National Employment Standards — with a few additional considerations around age-specific pay rates and working-hour restrictions.

Who counts as a "young worker"?

There is no single legal definition. In practice, the term covers:

- Junior employees — workers under 21 (sometimes under 20 or 18, depending on the award), who may be paid a percentage of the adult rate

- School-age workers — students in Years 10–12 who work part-time or casually alongside school

- Apprentices and trainees — young people in a formal training contract, which carries its own pay scale

The relevant Modern Award or enterprise agreement determines exactly which age bands apply and what percentages of the adult rate are payable. Check the Fair Work Commission's award finder for the specific instrument that covers your industry and role.

Pay rates: junior scales and the adult rate

Most Modern Awards include a junior pay scale — a percentage of the adult minimum that increases with age. A 16-year-old, for example, might be entitled to 60–70% of the adult rate, rising in annual steps until the employee reaches the award's adult threshold (commonly 21, but sometimes lower).

A few important points:

- Junior rates apply only when the award specifically provides for them. If the applicable award has no junior scale, the full adult minimum applies regardless of age.

- The National Minimum Wage Order sets a floor. No junior rate can fall below the national minimum for juniors, which the Fair Work Commission reviews annually.

- If a young worker is doing the same work as adult colleagues under an award that does not provide junior rates, pay them the adult rate.

Misclassifying an adult-rate role as a junior-rate role is a common underpayment risk. If you are unsure which rate applies, default to the adult minimum until you have confirmed the correct award classification.

Superannuation

The Superannuation Guarantee applies to young workers under the same rules as any employee. From 2026, the rate is 12% of ordinary time earnings, paid to a complying fund of the employee's choice (or a default fund if they do not nominate one).

There is one age-related threshold worth knowing: employees under 18 are only entitled to super contributions if they work more than 30 hours in a week. If a school-age casual works a short shift — say, 10 hours one week — no super is owed for that week. Once they exceed 30 hours, the full 12% applies to all ordinary time earnings in that pay period.

Track weekly hours carefully if you employ under-18s with variable rosters.

Tax and payroll obligations

Young workers are subject to the same PAYG withholding rules as adult employees. You withhold income tax from every pay based on the ATO's withholding schedules, taking into account the tax-free threshold declaration on their Tax File Number declaration form.

A few practical points:

- Many young workers will be earning below the tax-free threshold and will declare it on their TFN declaration. If they have not lodged a TFN declaration, withhold at the top marginal rate.

- If a young worker has a HECS/HELP study debt — increasingly common as more students start degrees before or during employment — you are required to withhold an additional amount on a banded scale once their income reaches the relevant repayment threshold. Confirm this on their TFN declaration form.

- Report every pay event to the ATO via Single Touch Payroll (STP). Finalise the STP record by 14 July after the end of each financial year.

Working hours and state-based restrictions

Fair Work minimum entitlements are federal, but rules about when young workers — particularly those under 15 — can work often come from state and territory law. Some states restrict late-night work for school-age children or require parental consent for employment below a certain age. These vary significantly between jurisdictions, so check the rules in your state or territory before rostering younger employees for evening or weekend shifts.

Regardless of age, casual workers must be offered and rostered in accordance with the applicable Modern Award, and part-time employees must have their guaranteed hours set out in writing.

Onboarding checklist

When you bring on a young employee, work through the same steps you would for any hire:

1. Confirm the applicable Modern Award and whether a junior rate applies

2. Determine the correct hourly rate for their age

3. Collect a signed TFN declaration and superannuation standard choice form

4. Set up STP-compliant payroll before the first pay run

5. Provide the Fair Work Information Statement (required for all new employees) and, for casuals, the Casual Employment Information Statement

6. Check any state-based age or hour restrictions that apply to the role

Young workers are protected by the full suite of National Employment Standards, including four weeks of annual leave for permanent employees and the redundancy-pay scale based on years of service. Their age does not diminish those entitlements.

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