What impacts Economic Security for Women” Roundtables - Findings and Recommendations

Roundtables are a core activity agreed upon at our F2F In Melbourne in May 2018.These Roundtables are to inform the women of Australia the work under each of eS4W’s Core Issues and their activities focusing on the identified policy recommendations from past reports and work undertaken by eS4W and our member organisations. eS4W have held roundtables in Adelaide, Brisbane, Canberra, Barwon South West (VIC), Gold Coast (QLD), Harvey (WA), Hobart, Launceston, Melbourne, Sydney,

Women from around Australia shared what they felt was needed to obtain economic security while undertaking paid and unpaid care work. Key Messages:

“Women experience a greater burden of compliance, income suspension and the non-payment of child support. It is women who are most likely to engage in the Social Security System and rely upon the child support scheme for their entitled payment. Systems are currently causing increased delays, grief, distress and financial stress.”

“There is an absolute inadequacy of the way the systems are designed. The one-pointed question asked by DSS for payment/allowance allocation – “can you shower yourself” – but asks nothing about whether you can physically get to shower. The humanity in the system is lacking.”

Key Areas that impact women’s economic security:

• Carer payments and allowances
• Carer Financial Contribution
• Superannuation contribution for Carers
• Skills Assistance for carers re-entering the workforce
• Parental Leave enhancements
• Work-place flexibility
• Child Support
• ParentNext
• New Start
• Legislation and Law reform

FLEXIBLE WORK-PLACE

Findings:

• The need for a change in corporate culture
• Stigma for leaving the work-place for carer duties

 Recommendations:

• Job share options
• Part-time options
  • Part-time hours of work – not consolidate 5 days into 3.

SUPERANNUATION CONTRIBUTIONS FOR CARERS

Findings:

• The women (and men) undertaking carer duties had very little or no superannuation funds. This has led to women becoming homeless or living with their children
• Women (and men) working in the paid carer roles are typically employed on a casual basis and sometimes by more than one provider putting them under the $450 threshold for the super guarantee

Recommendations:

• As referenced in eS4W’s White Paper on the Impact The impact of unpaid care work on women’s economic security in Australia recommends that contributions to the carer’s superannuation fund should be made on a regular (annual) basis, depending on a means and superannuation balance test. At a minimum, the government payment should be $5,000 per annum (indexed to the CPI), which is a level that would supplement retirement savings while the carer is away from paid employment. This would help to ensure that on retirement, there is a greater probability of a viable retirement nest egg.

This is not a new “idea” but one that has been suggested in various forms and many times over the years by:

• Productivity Commission Inquiry – valuing unpaid caring work
• Australian Human Rights Commission: Investing in care: Volume 1: Research Report 2013
• Many countries with social insurance-based public pension schemes have introduced the means of crediting a person’s public pension scheme while they are out of the workforce providing care. Some of the countries which have caring credit systems effectively operating include France, Germany, Sweden, Canada, Finland and the UK.

At a time when superannuation contributions are seen as an important factor in reducing the call on the public pension over the longer term, a near term financial cost of the contribution to superannuation would have lifelong benefits of great financial security in retirement, including for carers.

• Removing legislative gaps in SG coverage, particularly the wage threshold of $450 per month for SG contributions.