Domestic violence measures welcome but Government’s economic package falls short on improving retirement outcomes for women
The Government’s newly announced Women’s Economic Security Statement was a missed opportunity to improve retirement outcomes for women, said the Australian Institute of Superannuation Trustees (AIST) today.
AIST CEO Eva Scheerlinck said while the domestic violence measures in the package were welcome, it was disappointing that the Government had backed away from including key measures to help many Australian women achieve a more dignified retirement.
“Women need economic security throughout their lives, which includes financial security for an increasingly long retirement,” Ms Scheerlinck said. “The broken work patterns of many women, coupled with the persistent gender pay gap, mean there is an urgent need for targeted measures to prevent many Australian women retiring in poverty.”
Key Measures that AIST had called for to include in the package were:
• Abolition of the $450 monthly income threshold for compulsory super payments;
• Paying super on paid parental m leave – this is the only form of leave that doesn’t attract super;
• Providing low income earners, most of whom are women, with an additional super contribution. Modelling shows this would make the biggest difference to closing the gender retirement gap which sits at over 40%; and
• A firm commitment to move to 12% compulsory super in accordance with the legislated timetable, which is very important to improve retirement outcomes for women.