166
However, it is important to recognise that financial literacy programmes are sufficient to a point (Riach 2018). In order to improve equality between women and men
in retirement, it is also necessary to address the systemic barriers innate within the
current superannuation system. In this regard, it is beneficial and necessary to consider how sub-target 10.3 and 10.4 can be employed to reduce the economic inequalities in retirement between men and women.
11.4.2 SDG 10.3 and 10.4: Removing Systemic Barriers
to Meliorate Superannuation Policy for Women
This section will focus on the systemic barriers of superannuation policy in
Australia; crucially, these systemic obstructions place women in a precarious disadvantage of being unable to accumulate adequate super savings for retirement. As
investigated in the first section of this chapter, this largely stems from the preference
superannuation policy given to full-time and continuous work. However, as women
are more likely to take parental leave, unpaid care leave or work part-time, this
inflicts a handicap upon women in accumulating the same superannuation savings
as men. As such, this section will consider how the superannuation system can be
reformed to account for the different work and career trajectories that women face.
The mechanisms that this chapter will address include increasing the low income
super tax offset (LISTO) contributions to $1000; paying superannuation during paid
parental leave abolishing the $450 minimum threshold; and finally, establishing an
independent review panel. Crucially, these mechanisms align with sub-targets 10.3
and 10.4 of SDG 10, which, respectively, call for the adoption of policies that
achieve greater equality and secure equality of opportunity (Nations 2019).
11.4.2.1 Taxation of Concessional Contributions: Increasing LISTO
Co-contributions
Concessional contributions
7
are taxed at a flat rate of 15%; however, this is a punitive tax for low-income earners (Funds 2018). For example, an individual earning
up to the tax-free threshold ($18,200) per annum has an income tax rate of 0%.
Similarly, an individual earning $37,000 per annum has an income tax rate of
9.65%. It is evident that the flat rate tax of 15% on concessional contributions penalises low-income earners, as they lose 15% of their contribution; thus, it can be
7 Concessional contributions are contributions made into a super fund before tax. This includes
employer contributions (compulsory contributions), additional employer concessional contributions, salary sacrifice payments and contributions that are allowed as an income tax deduction.
Importantly, once the concessional contributions are in your super fund, they are taxed at a 15%
rate. Concessional contributions are distinguishable from non-concessional contributions; see
Office (2018a, b).
C. Power
However, it is important to recognise that financial literacy programmes are sufficient to a point (Riach 2018). In order to improve equality between women and men
in retirement, it is also necessary to address the systemic barriers innate within the
current superannuation system. In this regard, it is beneficial and necessary to consider how sub-target 10.3 and 10.4 can be employed to reduce the economic inequalities in retirement between men and women.
11.4.2 SDG 10.3 and 10.4: Removing Systemic Barriers
to Meliorate Superannuation Policy for Women
This section will focus on the systemic barriers of superannuation policy in
Australia; crucially, these systemic obstructions place women in a precarious disadvantage of being unable to accumulate adequate super savings for retirement. As
investigated in the first section of this chapter, this largely stems from the preference
superannuation policy given to full-time and continuous work. However, as women
are more likely to take parental leave, unpaid care leave or work part-time, this
inflicts a handicap upon women in accumulating the same superannuation savings
as men. As such, this section will consider how the superannuation system can be
reformed to account for the different work and career trajectories that women face.
The mechanisms that this chapter will address include increasing the low income
super tax offset (LISTO) contributions to $1000; paying superannuation during paid
parental leave abolishing the $450 minimum threshold; and finally, establishing an
independent review panel. Crucially, these mechanisms align with sub-targets 10.3
and 10.4 of SDG 10, which, respectively, call for the adoption of policies that
achieve greater equality and secure equality of opportunity (Nations 2019).
11.4.2.1 Taxation of Concessional Contributions: Increasing LISTO
Co-contributions
Concessional contributions
7
are taxed at a flat rate of 15%; however, this is a punitive tax for low-income earners (Funds 2018). For example, an individual earning
up to the tax-free threshold ($18,200) per annum has an income tax rate of 0%.
Similarly, an individual earning $37,000 per annum has an income tax rate of
9.65%. It is evident that the flat rate tax of 15% on concessional contributions penalises low-income earners, as they lose 15% of their contribution; thus, it can be
7 Concessional contributions are contributions made into a super fund before tax. This includes
employer contributions (compulsory contributions), additional employer concessional contributions, salary sacrifice payments and contributions that are allowed as an income tax deduction.
Importantly, once the concessional contributions are in your super fund, they are taxed at a 15%
rate. Concessional contributions are distinguishable from non-concessional contributions; see
Office (2018a, b).
C. Power