INTRODUCTION

Budget 2018-19 is not a great Budget for Women.

That said, it is the first Budget for some time when there have been two women (Sen. Michaelia Cash and Kelly O’Dwyer) members of the Expenditure Review Committee, and where the Minister for Women (O’Dwyer) is an avowed feminist and has expressly required the Office for Women to assist her in her role on the ERC.

Experience has taught me that sometimes as much work can go into preventing or subverting initiatives (expenditures or savings) in the ERC which might be hostile to women as goes into achieving positive measures for women.

So many initiatives which we consider might be of positive benefit for women are not in this Budget. There remain however notwithstanding some individually beneficial measures (cf. changes to superannuation) not a few measures which will be desperately bad for women — consider the proposal to garnishee welfare payments of beneficiaries who have unpaid fines … consider the rate at which this will impact Indigenous women, who already crowd our jails on non-payment of fines, or on women with intellectual disabilities.

Other measures have both beneficial and disincentive elements: Measures that reduce the tax payable by low income earners will disproportionately benefit women, as 85% of female taxpayers earn less than $90,000 compared to 72% of male taxpayers (ATO, 2018). However the tax offset increases the effective marginal tax rate by 1.5% for taxpayers within the taper zone, which increases work disincentives for women and other low-income taxpayers. The potential to increase workforce participation by part time workers through a lower tax rate is therefore moderated by the effect of the taper rate. We noted the Budget Statement circulated by Minister O’Dywer.

We noted also her statement shortly before the Budget that we might expect a September Statement from her on measures to enhance women’s economic security. We understand that funds are in the budget for this Statement, even though its shape is not yet settled.

 

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