AIST proposes gender shortfall solutions

2 September 2008

| By Jayson Forrest |

Fiona Reynolds

The Australian Institute of Superannuation Trustees (AIST) has released its submission to Government on pay equity and female participation in the workforce, calling for paid maternity leave with a superannuation component, among other measures.

In its submission to the Government’s inquiry on wage equity and female participation in the workforce, AIST has recommended that the Government introduce paid maternity leave with superannuation, or a one-off super Baby Bonus contribution, the abolition of the $450 monthly super threshold that forces causal female workers to miss out on super, and an extension of the Government co-contribution scheme so that more women benefit.

The AIST is also investigating the benefits of removing the 15 per cent contribution tax on super for low-income earners, with AIST chief executive Fiona Reynolds saying “if women earn 15 per cent less than men, then at the very least it would seem fair the Government considers removing the 15 per cent contributions tax”.

Reynolds said the retirement needs of women were being jeopardised by the fact that many earn 15 per cent less than men and take career breaks to raise children. Lower incomes and workforce participation among women could leave them $100,000 worse off than men in retirement.

"The 15 per cent gender wage gap not only undervalues women's work but also undervalues their retirement security. Even with the full benefits of compulsory superannuation, many generation X and generation Y women will be substantially reliant on the age pension unless more can be done to improve the retirement outcomes for women," Reynolds said.

Meanwhile, the Fund Executive Association CompanyName,27536 has awarded the chief executive of HESTA Industry Super Fund CompanyName,25322 , Anne-Marie Corboy, with the Fund Executive of the Year award for her work in ensuring her members receive the full benefits of superannuation.

AMP Capital Investors' business director of client, product and marketing, Brian Delaney, said: "Anne-Marie's efforts calling attention to the needs of female superannuation have aided not only her own fund members but the industry as a whole, making her a well deserving recipient of this award."