Implementing policy measures that introduce a discount on marginal tax rates will be detrimental to women in low- to middle-income earning tax brackets, according to industry lobby group Women in Super.
In a pre-budget submission, Women in Super said that modelling conducted by Industry Super Australia shows that introducing a rebate model where individuals pay tax on super at marginal tax rates but then receive a 20 per cent rebate would negatively affect women who are clustered in the low- to middle-income earning brackets.
The 20 per cent rebate model has been supported by the Financial Services Council and others in the industry, who claim it would “level the playing field” for superannuation tax concessions.
The Women in Super submission argued that the majority of government policy measures and tax concessions in superannuation should be “targeted to those Australians who are not currently in a position to achieve an adequate standard of living in retirement”.
The submission also called for a superannuation component to be included in paid parental leave payments in the same way as it is included in other payments such as annual and sick leave.
“It is undeniable that women’s superannuation balances, in particular, suffer as a direct result of absence from the workforce to raise children,” the submission said.
Research from the Australian Institute of Superannuation Trustees confirmed a ‘flat lining’ of women’s balances between the ages of 38-47, which has not changed in at least the last decade.
Women in Super said it strongly supported the Productivity Commission’s recommendation that the paid parental leave scheme include a superannuation component, so that all parents, but especially women, can grow their superannuation savings while on parental leave.
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