There are a number of policy reasons to encourage workforce participation by women. The key reasons can be identified as:
1. Children in workless households are at greater risk of poverty2 ;
2. Underemployment affects the ability of women to save for their retirement3 ; and
3. Lower participation rates for women than men constitute a significant source of labour to maintain productivity in the Australian economy4.
In recent consultations with women throughout Australia, women identified a range of issues as relevant in determining the extent to which they are able to engage in the work force. The key issues identified are:
widespread under-employment, despite the wish to further engage in work
surprisingly common reports of experience of sex, age and pregnancy discrimination in workplaces
fear of financial insecurity in later life especially in the event of marriage breakdown
lack of understanding of and dissatisfaction with superannuation
lack of understanding of detailed tax and transfer interactions
inability to easily access clear information on entitlements to child care benefits, together with worries about child care access and about appropriate quality standards in child care services
minimal knowledge or information about the range of adult re-training programs available through Commonwealth and State funded systems. The final report of the Review of Australia’s Future Tax System (Henry Review) made recommendations in respect of superannuation, child care, the tax transfer system and housing, and accordingly we bring these issues to the tax forum.