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

What to Do When an Older Car Is No Longer Worth Keeping in Melbourne

Ever looked at another repair quote and wondered whether your old car is still worth the trouble? It is a common turning point for Melbourne motoris...

Your Baby's First Year: A Local Guide to Feeding, Sleep, and When to Get Extra Support

Ask ten parents in a Brisbane mothers' group how their baby is feeding or sleeping, and expect ten different answers.  Someone's baby sleeps throug...

Kitchen and Laundry Makeover Ideas That Don't Require a Full Renovation

Full kitchen renos are expensive — and most people don't actually need one.  They need the kitchen to stop looking like it's stuck in 2009, or they...

How Technology Is Reshaping the Modern Australian Commercial Kitchen

The commercial kitchen has always been shaped by technology. Refrigeration changed how ingredients could be stored, modern ventilation transformed k...

The Number on a Roller Blind Fabric That Nobody Explains

Somewhere in the fabric book, next to the colour name, there is a percentage. Three per cent. Five per cent. Ten per cent. Nobody explains it, most c...

What’s Trending in Men’s Jewellery This Father’s Day!

Finding a Father’s Day gift that feels personal, stylish and genuinely wearable is not always easy. While socks and novelty mugs have traditionally ...

Road Signs: Understanding Their Role in Clear and Effective Signage

Effective signage and display hardware can help businesses communicate information, promote products and organise customer or visitor movement. Road...

Bottle Label Printing: Key Factors to Consider Before Your Next Packaging Run

Effective packaging begins with understanding the product, bottle material, artwork and production requirements when planning bottle label printing. H...

Planning a Long-Distance Move With Interstate Movers Melbourne

Moving between states involves more planning than a typical local relocation. Along with packing and transporting household belongings, you need to...

Understanding the Role of an I/O Controller in Industrial Automation

Modern industrial systems depend on accurate communication between sensors, machines and control systems. An I/O controller can help manage this commu...

How the Right Mining Hose Supports Demanding Operations

Mining environments place considerable demands on equipment used for material transfer, water management and processing. Hoses operating in these co...

Simple Ideas for Making Social Gatherings More Memorable

We have all been to those parties where everyone just stands around the kitchen island, staring at their phones, waiting for someone else to make a mo...

Outdoor Wall Lights: Improving Exterior Lighting Around Your Home

Lighting can influence how a room looks, feels and functions, so the right fitting should be selected according to both appearance and practical req...

Commercial Office Cleaning: Combining Routine Office Cleaning With Melbourne Service

Keeping a workplace clean requires a service that can accommodate everyday tasks as well as the particular needs of the business. Professional comme...

Caravan Sales in Queensland: How to Find the Right Caravan for Sale QLD

Caravan ownership is about more than having somewhere to sleep while travelling. For many Queenslanders, it is one of the best ways to explore regio...

What Sir Walter Buffalo Turf Actually Costs in 2026 (And Why Quotes Vary So Much)

Two quotes landed on a Hills District homeowner's kitchen table last spring for the exact same 80-square-metre backyard. One said $12 a metre. The o...

Nearly 1,300 NSW Hospital Beds Are Occupied By People Who Are Ready To Go Home

1,276 people in NSW hospitals have been medically cleared for discharge but remain in hospital because they're still waiting for NDIS or aged care sup...

National Survey Launched to Measure Operational Impacts of Federal NDIS Policy Reforms

The effects of recent NDIS reforms are beginning to move beyond policy papers and into day to day service delivery. A new national survey is asking ...