Overview and list of recommendations
Many Australian women face an insecure retirement. Men's
superannuation balances at retirement are on average twice as large as women's.
In practice this means that women, particularly single women, are at greater
risk of experiencing poverty, housing stress and homelessness in retirement.
This is a problem born of many interrelated factors. At its
heart, however, is the fact that women and men experience work very
differently. Women are more likely to work in lower paid roles and lower paid
fields, are more likely to work part-time or casually, and are more likely to
take breaks from paid employment to provide unpaid care for others. Over their
lifetimes, as a consequence, they will earn significantly less than men.
Australia's retirement income system does not adequately
accommodate this difference. It structurally favours higher income earners who
work full-time, without breaks, for the entirety of their working life. The
women (and men) who do not fit this pattern of work face a significant handicap
when saving for their retirement.
The causes of gender inequality in retirement are complex,
and a solution is correspondingly complex. While there are no simple answers,
the committee is of the view that Australia needs to redouble its efforts to
achieve equality at work—paying women equally, offering access to career
development and leadership opportunities, and accommodating rather than
penalising those who care for others. Government, business, and individuals
have a role to play in achieving women's full participation in our workplaces.
The committee has made 19 recommendations intended to help
women increase their participation in the workforce and improve their
superannuation savings as a means of achieving dignity and economic security in
retirement. It looks at promoting measures that will assist women in retirement
to live comfortably and securely as they age.
Recommendation 1 paragraph
3.15
The committee recommends that the Australian Government
review the Fair Work Act 2009 to determine the effectiveness of Equal
Remuneration Orders in addressing gender pay equity, and consequently in
closing the gender pay gap. The review should consider alternative mechanisms
to allow for a less adversarial consideration of the undervaluing of women's
work.
Recommendation 2 paragraph
3.51
The committee recommends that the Australian Government
continue to support the work of the Workplace Gender Equality Agency and ensure
that it is adequately resourced.
Recommendation 3 paragraphs
4.16–4.17
The committee recommends that the Australian Government
consider carefully the recommendation from the Australian Human Rights
Commission's Supporting Working Parents: Pregnancy and Return to Work
National Review, to amend the Sex Discrimination Act 1984 to:
- extend
the discrimination ground of 'family responsibilities' under the Sex Discrimination
Act to include indirect discrimination; and
- include
a positive duty on employers to reasonably accommodate the needs of workers who
are pregnant and/or have family responsibilities.
Following its inquiry into Employment Discrimination against
Older Australians and Australians with Disability, the Australian Human Rights
Commission's findings may provide further opportunity to introduce measures to
address age discrimination experienced by older Australians, particularly
women.
Recommendation 4 paragraph
4.35
The committee recommends that the Australian Government
consult with stakeholders on practical options to implement the relevant
findings from the Australian Human Rights Commission's Supporting Working
Parents: Pregnancy and Return to Work National Review, which recommends
strengthening the 'right to request' provisions under s 65 of the Fair Work
Act 2009 by:
- removing
the qualification requirements in section 65(2)(a) of the Fair Work Act (that
is, the requirements for 12 months continuous service);
- introducing
a positive duty on employers to reasonably accommodate a request for flexible
working arrangements; and
- establishing
a procedural appeals process through the Fair Work Commission for decisions
related to the right to request flexible working arrangements to ensure
processes set out in the Fair Work Act have been complied with.
Recommendation 5 paragraph
4.43
The committee recommends that the Australian Government
refer the question of effective marginal tax rates for second-earners to the
Productivity Commission for review, noting the significance of women's
workforce participation.
Recommendation 6 paragraph
4.63
The committee recommends that the Commonwealth Paid Parental
Leave Scheme continue to be improved over time to allow for 26 weeks paid
parental leave through the combination of government and employer funding.
Recommendation 7 paragraph
4.80
The committee recommends the Australian Government
investigate further the interaction between means testing of the Age Pension
and mature age workforce participation.
Recommendation 8 paragraph
5.38
The committee recommends
that the Australian Government ensure that any changes to the retirement income
system are measured against the guiding principle of dignity in retirement and
should:
-
deliver a decent standard of living for both men and women in retirement;
-
take into consideration the interrelationship between the three
pillars of the retirement income system—the Age Pension (including income and
assets tests); the superannuation system (with particular reference to tax
concessions); and private savings—as well as mature age workforce
participation, housing, health and aged care;
-
recognise the diversity of experience and outcomes in retirement
incomes for different groups in society, particularly but not restricted to
women;
-
adequately assess and mitigate the risks placed on the
individual;
-
determine mechanisms for developing benchmarks for the adequacy
of retirement incomes to inform future policy; and
-
introduce mechanisms to measure and assess reforms to ensure they
are meeting objectives.
Recommendation 9 paragraphs
5.57–5.58
The committee
recommends that the superannuation guarantee should be paid on the Commonwealth
Paid Parental Leave Scheme.
The committee
recommends that mechanisms for improving the retirement incomes of carers be
examined.
Recommendation 10 paragraphs
6.14–6.15
The committee
recommends that the Australian Government set an objective for superannuation
that supports the continuation of a strong three pillar retirement income
system.
In drafting this
objective for the superannuation system, the Australian Government should
include specific reference to women's retirement incomes, to ensure gender
equity is a continuing focus for policy makers.
Recommendation 11 paragraph
6.25
The committee
recommends that superannuation tax concessions be re-targeted to ensure that
they are more equitably distributed and assist people with lower superannuation
balances to achieve a more comfortable retirement.
Recommendation 12 paragraph
6.40
The committee recommends
that the concessional superannuation contributions of lower income earners are
not taxed at a higher rate than their ordinary income, and that the Australian
Government commit to retaining the Low Income Superannuation Contribution
beyond 30 June 2017.
Recommendation 13 paragraph
6.53
The committee recommends that the
Australian Government revise the current schedule for the increase in the
superannuation guarantee (SG) rate to 12 per cent, and ensure the
gradual increase in the SG rate is implemented earlier than the current
timetable.
Recommendation
14 paragraph
6.72
The committee
recommends that the Australian Government amend the Superannuation Guarantee
(Administration) Act 1992 to remove the exemption from paying the superannuation
guarantee in respect of employees whose salary or wages are less than $450 in a
calendar month.
Recommendation 15 paragraph
6.95
The committee
recommends that all government policy analysis in relation to retirement
incomes include specific analysis comparing the impact of each proposal on men
and women.
Recommendation 16 paragraphs
7.49–7.50
The committee
recommends the Australian Government amend the Sex Discrimination Act 1984
to ensure companies are able to make higher superannuation payments for their
female employees when they wish to do so. As part of this process the
Australian Human Rights Commission should explore options and advise the
Australian Government on appropriate legislative changes.
Following any
amendments to the legislation, the Australian Human Rights Commission should
develop guidelines and advice for any organisation contemplating providing
additional superannuation payments for women.
Recommendation 17 paragraph
8.38
The committee
recommends that, in order to provide certainty and security for the majority of
Australians who will receive the Age Pension in retirement, the government:
- abandon its proposal to increase the Age
Pension retirement eligibility age to 70; and
- commit to maintaining the current method
of indexation and benchmarking for the Age Pension.
Recommendation 18 paragraph
9.32
In light of the growing number of older people, particularly
women, who are relying on private rental accommodation in retirement, the committee
recommends that the Australian Government urgently review the adequacy of
Commonwealth Rent Assistance.
Recommendation 19 paragraph
9.33
The committee reiterates recommendation 26 of its 2015
report, Out of Reach?: The Australian housing affordability challenge:
In light of the anticipated rise
in the number of older Australians in the private rental market, and the
insecure tenancy confronting many older renters, the committee recommends that
the Australian Government look closely at its aged care policy so that it takes
account of the particular difficulties confronting older Australians in the
rental market. The aim would be to determine how policies designed to assist
older Australians to remain in their home could take better account of, and
accommodate, the added difficulties for older people accessing safe and secure
housing and in conducting modifications to rental dwellings, and more broadly
in renting in the private rental market.
Navigation: Previous Page | Contents | Next Page