be super concerned The Budget has increased women’s savings by billions by not messing with the legislated super increase and mandating that super is paid to all part-time workers. But the government has refused to pay super on Commonwealth paid parental leave – more than 90% of which would be paid to women. Women retire with a third less super than men, a big driver is the time women take out of the paid workforce for unpaid caring – if the government was serious about closing the gender super gap they would get super paid on every dollar earnt, including parental leave. Woman are typically retiring with around $60,000 less super than men – as the federal government drags its feet on fixing outdated policies that harm women’s retirement savings. Women not only retire with about a third less super than men, the state’s median female balance of $48,700 also trails the national female median of $49,300. The gender super gap opens noticeably once a woman enters her 40s. From her late 40s onwards, women can expect to have almost a third less super than men. The balance for women in their 60s is $143,500, well below the $204,100 median male balance. The Super Guarantee rate will lift to 12% by 2025 as legislated – the increases will allow millions more families to save enough for retirement than if the rate was frozen at 9.5%. Women on low to middle-incomes will get the super rate increase in the greatest numbers so lifting the rate is also an important step to bridging the gender savings gap. The $85,000 savings boost the typical 30-year-old woman will get from the super rate increase is an important step to ensure fewer women face economic insecurity at retirement.
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The Super Guarantee will not only lift Australia’s retirement savings it will provide billions in additional investment to grow the Australian economy, creating jobs and higher wages. Abolishing the outdated $450 threshold, which means super was not paid if you earned less than that figure a month, will see $200,000 lower-income women get a much-needed rise. To further help women the government should also move the Low-Income Superannuation Tax Offset (LISTO) so it better aligns with the income tax brackets, a tax cut that would benefit more than 700,000 women on low incomes. Other super Budget measures to allow first home buyers to contribute more voluntary super contributions towards a deposit will make no difference to housing affordability, it could lead to higher property prices. Increasing the amount retirees can contribute to their super after downsizing their home needs to be examined in further detail, with wealthy selffunded retirees most likely to benefit. A recent retirement survey, commissioned by ISA, found that on average women spend 12 years less in the full-time workforce than men, this time away from work is having a dramatic impact on their super balance. One in three women retire with no super balance at all, according to a 2016 Senate report. After employers and workers pulled the economy through a really tough year, it’s good that Australians can bank on super going to 12% but a real let down that the government didn’t take the opportunity to close the gender gap by getting super paid on paid parental leave.” Industry Super Australia Chief Executive Bernie Dean
