Google AI


Modern Australian

a good way to increase women's dependence on men

  • Written by: Helen Hodgson, Professor, Curtin Law School and Curtin Business School, Curtin University
a good way to increase women's dependence on men

Making super contributions voluntary for people earning less than A$50,000 a year, as proposed by Liberal Senator Andrew Bragg, would be a backward step for women.

It would predominantly be used by women, because more women earn less than A$50,000 than men. In 2016-17, 306,008 women earned less than A$50,000, compared with 216,749 men.

Many would find it a help. An extra 9.5% of salary (an extra 12% if compulsory superannuation contributions climb as planned) would be exceedingly useful.

And most women have much less super than most men. In 2017, the median super balance for women aged 60-64 was A$36,000. For men it was A$110,000.

This is partly because women are much more likely than men to take time out of work or to work part-time to care for children and other family members, and partly because of the persistent gender pay gap.

Read more: Will the real gender pay gap please stand up?

The gender pay gap means that women contribute less to superannuation, and as a result are much more likely than men to experience poverty and hardship in retirement and will have to rely on the pension anyway, regardless of super.

So why not let women take the money?

Senator Bragg says his proposal could lift disposable incomes for low earners, and save the government A$1.8 billion in the first year alone, because earnings taken in cash are taxed more highly than earnings paid into super - although these people are least able to afford the extra tax.

But it could also change the dynamics within relationships.

Compared with other developed countries, Australia has a high proportion of “1.5 earner” families, made up of a man working full-time (often earning much more than A$50,000) and a woman working part-time (often earning less).

They would be tempted to regard the lower earner’s superannuation account as unnecessary and take the money upfront, using only the higher earners account for retirement.

The inevitable outcome would be a reversal of the recent narrowing of the superannuation gap, with women increasingly dependant on their husbands (or a good divorce lawyer) for security in retirement.

Why not make super meaningful?

There are alternatives that would reduce the gender gap in retirement incomes. The 2016 Senate inquiry into economic security for women in retirement recommended government contributions during parental leave and removing the exemption for employers of low income earners earning less than A$450 per month.

And in 2010 the Henry Tax Review recommended a flat tax concession for super contributions, instead of the present one that widens the gap between low and high earners.

Read more: We won't fix female super until we fix female pay, but Labor's ideas are a start

Although successive governments have made changes to the superannuation system, none has adopted the recommended flat tax concession. Nor have they shown much concern for workers earning less than A$50,000.

Earlier this month, Senator Bragg’s party pushed through parliament legalisation that excludes workers earning less than A$48,000 from the full budget tax offset.

Workers earning less than A$50,000 find it difficult to make ends meet. It is true that the super system (and the new tax offset) treats them badly. But allowing them to opt out of super would make them even more reliant on either the pension or better-off partners.

Read more: Frydenberg should call a no-holds-barred inquiry into superannuation, now, because Labor won't

Authors: Helen Hodgson, Professor, Curtin Law School and Curtin Business School, Curtin University

Read more http://theconversation.com/voluntary-super-a-good-way-to-increase-womens-dependence-on-men-120979

Breach of Contract in Business: What Are Your Options?

Contracts are essential to business relationships. They establish expectations, allocate responsibilities and provide a framework for delivering goods...

How Pest Control Companies Can Rank for the Problems Customers Search First

Introduction SEO for Pest Control needs to start with the customer’s problem. Most people do not search for pest services in a neat or technical wa...

What Are the Benefits of Renovating an Older Home in Sydney?

Sydney has plenty of character homes, from Federation cottages to mid-century brick homes. Renovating rather than rebuilding can preserve what makes t...

Pool and Deck Design: How to Plan the Perfect Outdoor Living Space for Your Sydney Home

For many Australians, the backyard is where life happens. Summer barbecues, weekend swims and long evenings outdoors are all part of the lifestyle, ...

Is Solar Pool Heating Worth It? What Sydney Homeowners Should Know

There's nothing quite like a backyard pool on a hot Sydney day. But once autumn rolls in, many pools sit unused for months because the water is simp...

Planning a Luxury House Move: A Week-by-Week Timeline for Prestige Sydney Homes

Selling or buying a prestige home is a major milestone. Whether it's a waterfront residence in Birchgrove, a grand Federation home in Haberfield or ...

Downsizing or Upgrading Your Caravan? Here's How to Sell It Without the Hassle

Selling a caravan can feel like a major task, especially when you are unsure about its value, paperwork, or how to find a buyer. Whether you are dow...

The Best Overseas Adventure Holidays for Australians Who Love the Outdoors

Australia offers no shortage of incredible outdoor experiences, but sometimes the best way to satisfy your sense of adventure is to head overseas. A...

Cape Town Wine Shuttle: Winelands Tasting & Tours

Embark on an unforgettable journey through the picturesque Cape Winelands, where world-class wines and breathtaking scenery await. Our Cape Town Win...

Metal Fabrication: Choosing Metal Fabrication Melbourne Services for Custom Projects

What Modern Metal Fabrication Involves From individual components to complete structures, metal fabrication brings together processes such as desig...

Why Giant Rats Tail Grass Keeps Coming Back After Spraying

Giant Rats Tail Grass (GRT) is one of the most frustrating pasture weeds for farmers and lifestyle property owners. You spray an infested area, see th...

When Custom Cardboard Boxes Make Sense for Your Business

Custom cardboard boxes can be useful when a standard carton does not fit a product, packing method or presentation requirement particularly well. A ...

Full-Height vs. Pop-Top Caravan: Which Is Better for Family Travel across WA?

A pop-top caravan is an excellent choice for travellers who want the comfort of a caravan without committing to a larger, bulkier setup. With a lowe...

Bottle Label Printing: Key Factors for a Professional Finish

Why the Printing Method Matters When businesses need packaging or printed containers developed for a particular application, the right supplier can m...

Virtual Livestock Fencing and GPS Tracking: Improving Visibility Across Cattle Properties

What Virtual Livestock Fencing Means for Modern Cattle Management Managing cattle across extensive properties requires more than knowing where anim...

Sydney Pawnbrokers Explained: How Hocking Your Car Actually Works

Sometimes you need cash, and you need it soon. If you own a car, you may already have a way to get it. That's what people mean when they say they've...

Moving Interstate from the Gold Coast to Brisbane (or Back)? What Removalists Wish You Knew First

Have you talked to anyone who’s done the move? They say the same thing: the drive up the M1 is the easy part. It's everything around it that catches...

Why the Spring School Holidays Are a Great Time to Visit Coffs Harbour

The spring school holidays are a good time to spend a few days on the Coffs Coast. The weather is starting to warm up, there is plenty to do outdoor...