Should 18-year-olds be paid adult wages?
When Baylin Lipkevius Thompson turned 18, he was juggling two supermarket jobs to cover rent and transport.
"At one point I was working at both Coles and Woolworths just to make ends meet because junior rates were just not enough," he says.
Now 21, Thompson is a spokesperson for Adult Age = Adult Wage, a campaign by the Shop, Distributive and Allied Employees' Association (SDA) calling for workers aged 18 and over in retail, fast food and pharmacy to be paid the same as adults.
"Having to decide between topping up your Myki and paying for food that day is something young Australians should not have to go through," he says.
What's before the Fair Work Commission?
The SDA has lodged a case with the Fair Work Commission (FWC) to scrap junior pay rates for employees aged 18 to 20 under the General Retail, Fast Food and Pharmacy awards.
At present, those awards scale pay by age:
- 18-year-olds earn 70% of the adult rate,
- 19-year-olds 80%, and
- 20-year-olds 90%.
That means a full-time 18-year-old retail worker earns $18.59 an hour - about $743 a week before tax - while a 21-year-old doing the same job earns $26.55 an hour, or roughly $1,062 a week.
Over a month, that's a pay gap of $1,273 before tax.
For comparison, a 16-year-old earns just $11.95 an hour under the same award.
The SDA says an 18-year-old needs 50 plus hours a week to earn what an adult makes in 38.
If the union's proposal succeeds, anyone aged 18 and over would move to full adult pay, while junior rates would remain for under-18s.
The case for change
Union leaders say the current system is outdated, penalising young adults who already shoulder adult responsibilities.
"Eighteen-year-olds can vote, drive and put their lives on the line for their country," says SDA national secretary Gerard Dwyer. "They don't get a discount on rent or bills because they happen to be 18. There's no justification for paying them 30% less."
The Australian Council of Trade Unions (ACTU) supports the proposal. The union's president Michele O'Neil says many 18-year-olds already have years of experience.
"Most started at 15 or 16 - by 18, they know the customers, the systems and the weekend rush. Paying them less just because they're younger doesn't reward work; it unfairly discounts it."
Supporters liken the move to previous pushes for equal pay and against penalty-rate cuts.
"When women fought for equal pay, employers said it would kill jobs. It didn't," Dwyer says. "They said cutting penalty rates would create jobs. It didn't. Fair pay doesn't kill jobs."
The case against
Retail industry groups warn that removing junior rates could backfire by reducing youth employment opportunities.
Research commissioned by the Australian Retailers Association (ARA) and National Retail Association (NRA) found 77% of retailers would likely hire fewer young people if junior and adult rates were equalised.
More than half said it would raise operating costs, forcing some to shorten trading hours or lift prices.
"Retail is the single largest employer of young Australians, with more than 500,000 workers under 24," says ARA chief executive Chris Rodwell. "If junior rates are removed, the impact on youth employment could be dire - especially in regional areas."
He says the tiered rates encourage businesses to "take a chance" on less-experienced workers, giving them a first step into the job market and the training to develop essential skills like teamwork and customer service.
"Without that incentive, employers will favour older, more experienced applicants," Rodwell warns.
The ACTU accuses opponents of using "scare tactics" and being "devoid of facts".
It points to rising female workforce participation after equal pay reforms.
The ACTU says those opposed are using "scare tactics" and are "devoid of facts".
The union points to female participation in the workforce growing after women won equal pay.
"Respectable studies show that cuts to penalty rates in the last decade did not add jobs to the workforce," the union says.
The SDA points to international examples to support its case.
"Other countries have already fixed this. In New Zealand, young workers get full pay after six months. Most Canadian provinces don't have youth rates. Australia is lagging behind, and young workers pay the price every shift."
What happens next
The FWC hearings will run through early November, with a decision expected afterwards.
Any ruling could reset pay scales across thousands of businesses, changing what young Australians earn - and how easily they find work.
For now, the question remains open: should turning 18 mean you finally earn what your labour is worth, or could equal pay come at the cost of fewer opportunities to get a foot in the door?
To check current pay rates for your award, visit the Fair Work Pay Calculator to ensure you are meeting the minimum requirements.
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