make super fair

THE CURRENT SYSTEM IS NOT FAIR, EFFICIENT OR SUSTAINABLE AND WE NEED TO CHANGE IT

The Women in Super (WIS) Make Super Fair policy is aimed at improving economic security for women in retirement as the current system is not fair, efficient or sustainable:

  • Women still retire with 47% less super than men
  • It is estimated that more than 40% of older single retired women live in poverty
  • Women are more dependent than men on the age pension
  • The fastest growing cohort of homeless people is single older women
  • Tax concessions in superannuation are skewed towards high income earners

WIS has developed a five point plan to address these issues and work towards developing a fairer system that sees women and low income earners reach greater economic security in retirement:

  1. Additional annual $1,000 government contribution into super for low income earners, to better support those with inadequate retirement savings
  2. No further delay to scheduled superannuation guarantee (SG) increases
  3. Pay SG on the government paid parental scheme
  4. Remove the $450 monthly income threshold on SG contributions
  5. Require Government to undertake and publish a gender impact statement for any changes to age pension or retirement income policy; ongoing tracking by WGEA of women's retirement gap.

The additional $1,000 government super contribution for low income earners would better support those with inadequate retirement savings. It would mean people earning less than $37,000 per annum would receive the annual contribution until their balance reaches $100,000 while they fall within the low income bracket. This would see a woman aged 25 with a starting salary of $25,000pa and projected retirement balance of $205,210 reach $235,347 making a $30,137 (+ 14.7%) increase. This 14.7% increase could mean the difference between retiring in poverty or not.

Modelling carried out by Rice Warner was central to the development of the Make Super Fair campaign. From the research undertaken it was found that this proposed additional contribution would cost just $2.7 billion per year and would be targeted at low income earners, most of whom are women and who need government help to achieve economic security in retirement. To see the assumptions used to calculate this figure, click here.

It is estimated that the Government spends $30 billion on super tax concessions annually and the majority of current super tax concessions are paid to high income earners, who do not need government help to achieve a comfortable retirement.

For a copy of the Make Super Fair policy outline, please click here.

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