Women’s economic security in later life is a critical issue.
On average women retire with 35 per cent less superannuation than men (2015 Westpac Retirement Readiness Report).
Women shoulder a disproportionate burden of unpaid caring work, taking time out of the workforce and working part-time, to meet caring responsibilities. These all affect their superannuation balances on retirement.
In the Budget 2016-17 the Government announced superannuation measures which will help women accumulate greater superannuation and reduce their dependency on the aged pension in retirement.
- Supporting women to make catch-up contributions to their superannuation, upon returning to work after time out of the workplace to care for children.
Since 1 July 2017, any unused concessional superannuation contributions can be carried forward on a rolling basis for up to five years for those with super balances of $500,000 or less.
- Improving the superannuation balances of low income spouses by extending the current spouse tax offset.
The current offset of up to $540 will become available for any individual, whether married or de facto, contributing to a spouse whose income is up to $37,000.
- The Low Income Superannuation Tax Offset will support the accumulation of superannuation for low income earners, who are more likely to be women.
This will allow individuals with an adjusted taxable income of $37,000 or less to receive an effective refund of the tax paid on their concessional contributions, up to a cap of $500.