The retirement income system affects women and men in different ways; it is not gender neutral. This submission responds to the terms of reference through a gender lens.
This submission particularly addresses question 14 in the consultation paper:
What factors and information should the Panel consider when examining whether the retirement income system is delivering fair outcomes in retirement? What evidence is available to assess whether the current settings of the retirement income system support fair outcomes in retirement for individuals with different characteristics and/or in different circumstances (e.g. women, renters, etc.)?
Recommendations
- NFAW recommends that withdrawals from superannuation should be taxed, albeit at a concessional rate to allow for the tax paid on contributions.
- NFAW recommends that further detailed modelling should be undertaken to consider the combined effect of taxing superannuation withdrawals; the removal of the SAPTO and adjusting the pension means test to ensure that the effective tax rate on the age pension is comparable to marginal tax rates.
- The legislated increase in superannuation guarantee should not proceed if it results in lower levels of take-home income for low income earners.
- NFAW recommends that superannuation guarantee be payable on parental leave entitlements, and that a system of carer credits be introduced in respect of other full time carers.
- NFAW recommends that the exemption from the superannuation guarantee for workers earning less than $450 per month be removed, with the change phased in to ensure that the take-home pay for such workers is not reduced.
- Companies should be further incentivised to address the gender pay gap, career break and shared parental care policies within their workforce.
- NFAW recommends that the rate of Commonwealth Rent Assistance be reviewed to ensure that it meets the needs of older renters; and that the value of home ownership taken into account when determining pension rates and aged care subsidies be reviewed to ensure that non-home owners are not disadvantaged.
