Women not treated fairly in retirement

In its submission to the Henry Inquiry into the Future of Australia's Tax System, the National Foundation for Australian Women calls on government to reform the Age Pension by creating a centralised retirement insurance plan for low-income earners and increasing the single pension rate, and to introduce policies to encourage women to work such as a national paid parental leave scheme. 

Releasing the NFAW Submission to the Henry Review, Mrs. Marie Coleman said: " It is clear that there are major gender inequities in the current Government supported systems for saving for retirement."

"Women are not getting a fair deal."

"The combined effects of taxation treatment of concessions for superannuation savings; of the inter-action of such systems as the withdrawal rate of Family Tax Benefit (B) and the net costs of child care, which act as a positive disincentive for women with children to return to work; and the way in which income tax policy and associated levies now create a higher effective marginal tax rate for low income earning women essentially mean Government policies are punishing low income earning women who are second income earners."

"We want to see the Treasury carefully exploring the gender aspects of income and tax policy."

After receiving advice from respected economist Professor Patricia Apps and consulting widely with women and women's organisations, NFAW says that the single rate of pension (including the GST supplement) should be benchmarked at 30 per cent of MTAWE and raised to 67 per cent of the couple rate.

This equates to an increase of approximately  $35 per week for single aged pensioners.

NFAW is also concerned that there are multiple systemic problems with current models of superannuation savings for lower income women, and calls for the Government to develop a centralised insurance plan for retirement income for low-income earners.

"This could be designed to allow additional contributions from Government for those on short or long-term Government income support payments such as Carers' and Disability Support Pension, as well as employer and personal contributions" said Mrs Coleman.

"Any new superannuation tax measures should discriminate in favour of low-income earners.  This would not only allow the super savings of low paid women to grow much faster, it would in part compensate for the tax free final benefit provision which favour high earners."

"We also regard the introduction of a national Paid Parental Leave scheme as essential to encourage better workforce participation for women. At an estimated cost of $500m this would be less expensive than providing tax concessions to well off super savers."

"Improving the current system of child care for children under school age, especially in relation to accessibility, quality and cost, and immediate enhancement of the current deplorable provision of out of school hours care and school vacation care for young school age children would also improve workforce participation."

Women's organisations that support the NFAW proposal include:

-   Australian Federation of University Women; 

-   YWCA Australia;

-   Women and Vocational Education;

-   United Nations Association of Australia Status of Women Network; 

-   Queensland Working Women's Service;

-   Northern Territory Working Women's Centre;

-   Working Women's Centre South Australia;

-   Association of Women Educators;

-   Children by Choice;

-   National Immigrant and Refugee Women's Association;

-   Women's Information and Referral Victoria

-   Conflict Resolving Women's Network Australia

-   Pan Pacific and South East Asian Women's Association

-   Aboriginal Law Reform Movement

-   Women With Disabilities Australia

-   International Women's Federation of Commerce and Industry

-   National Council of Jewish Women 

Media inquiries:  Marie Coleman 041 4483 067