A Senate committee report released on Friday has called on the federal government to urgently overhaul current legislation contributing to the huge gap in superannuation savings at retirement between men and women.

The report, titled A husband is not a retirement plan: Achieving economic security for women in retirement, has 19 key recommendations including overhauls to both the Fair Work and Sex Discrimination acts and an indefinite extension of the Low Income Superannuation Contribution that the government aims to abolish.

It follows a three-month inquiry by the Senate Economics Committee led by ALP president, Senator Jenny McAllister, which attracted 92 submissions.

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Click the owl to see some of the committee’s long list of recommendations:  

Research by the Workplace Gender Equality Agency 
found that the average superannuation balance at retirement was $105,000 for women and $197,000 for men, resulting in a gender retirement superannuation gap of 46.6 per cent.

Source: Workplace Gender Equality Agency

“While there are no simple answers, the committee is of the view that Australia needs to redouble its efforts to achieve equality at work – paying women equally, offering access to career development and leadership opportunities, and accommodating rather than penalising those who care for others,” the Senate report concluded.

Industry Super Australia deputy chief executive Robbie Campo welcomed the recommendations in the report and said there was an opportunity for the government to introduce changes in the Budget on Tuesday.

Women in Super chair Cate Wood has welcomed the Senate recommendations.

“There are a few issues that obviously are certainly within the grasp of the government to address in next week’s budget,” Ms Campo said.

“As a priority, the LISC should be retained and increased to ensure millions of women are getting the help they need to save for retirement.

“Generous tax concessions benefiting a small cohort of high-income earners should also be redirected to fund the LISC.”

Structural unfairness in the current system

The Australian Institute of Superannuation Trustees and Women in Super also welcomed the recommendations of the Senate inquiry.

WIS chair Cate Wood said that the recommendations highlight the structural unfairness of the current superannuation system that has clearly failed women who are retiring with just over half the super savings of men.

“We have tinkered around the edges for too long,” Ms Wood said. “It is time to break with the past and take the fair and rightful step forward by implementing structural changes.”

AIST senior policy adviser Karen Volpato said that it was positive to see the report had looked wider than only superannuation policy.

“Our research has shown that the best way to reduce the gender gap in super is to reduce the gender pay gap,” Ms Volpato said.

“AIST and WIS have long called for a gender lens on all workforce, taxation and super polices. We call on the government to take on the committee’s recommendations about this and implement them as soon as possible.

“There is no silver bullet but immediately moving to implement recommendations such as the retention of the Low Income Super Contribution, inclusion of super in Paid Parental Leave, and a redistribution of super tax concessions to low-income earners are all great starting points”.