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Super policies punish women: FSC
Certain tax proposals including a lower concessional contributions cap, would particularly punish women who have taken career breaks and are trying to catch up in their last decade of work, according to the Financial Services Council (FSC).
In her address to Women in Super, FSC chief executive, Sally Loane, urged the government to take a long-term view of superannuation policy rather than engaging in short-term tinkering.
She said the system was conducive to traditional, continuous full-time employment, and would therefore discriminate against women who would take career breaks.
"Women are not paid the same rate as men. They are more commonly employed in part-time or casual jobs, take time out of the workforce to raise children and care for elderly parents," Loane said.
The FSC said it had recommended various policy options to the Economic Security for Women in Retirement, a Senate Inquiry into retirement adequacy for women.
The FSC recommended employers should pay super contributions on the existing Commonwealth Paid Parental Leave scheme, which would be 18 weeks' pay at the minimum wage, and extend contributions over time to the super contributions a carer would have received if they had continued their employment.
It said the cost of this would be around $150 million per annum.
The FSC said it would also like the removal of barriers in the Sex Discrimination Act 1984, and allowance of lawful discrimination in situations where employers could make higher super contributions to female staff to close the retirement savings gaps.
Finally, the FSC would like the Government to consider allowing employers to pay super contributions to those who earn below the threshold of $450 a month, saying this equates to $112.50 a week, or around seven hours of work at minimum wage.
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