In the submission, the AFA said change was necessary and the government would reap the benefits in terms of future spending and of improving the financial security both of men and women in retirement.
The AFA made seven recommendations:
1. Convenient access to affordable, quality child-care, including out of school hours care;
2. Consider introducing lifetime superannuation contribution caps for low-income earners and those with breaks in their careers due to caring responsibilities;
3. Removal of the monthly $450 threshold for Superannuation Guarantee (SG) contributions;
4. Retention of the Low Income Super Contribution (LISC) scheme;
5. Consider an SG contribution tax-free period after parental leave to allow catching up on lost contributions;
6. Inclusion of SG on the government Paid Parental Leave scheme and other carer payments; and
7. The government should implement a comprehensive education and specific superannuation-focused financial literacy program targeting women in specific segments of greatest need.
In its submission, the AFA argued the savings would place less pressure on the age pension across the board.
“As statistics prove, women live longer than men, so the reliance on the aged pension is more significant for females than males,” it said.
