New data released by the Australian Taxation Office (ATO) shows the gender gap in retirement savings is most severe for women working part time in the bottom two tax brackets.
These findings call into question the Government's plan to increase taxes in these thresholds from July next year.
Industry Super Fund Australia chief executive, David Whiteley, said that these statistical insights show significant areas where the Government should carefully consider the context of mooted superannuation changes in the budget.
"The gap in super savings is most acute for females on lower taxable incomes with those earning below the tax free threshold having on average 42 per cent less super than males in the same tax bracket," he said.
The research data from the ATO shows that there are almost 40 per cent more females than males in the bottom two tax brackets.
"With lower levels of contributions it is absolutely necessary to increase the potency of them through stronger tax incentives. Rebalancing concessions to these groups will be fairer and more efficient," said Whiteley.
The new data revealed some unexpected outcomes as well, showing that women are recording slightly higher super savings than men.
"Women in higher tax brackets have on average slightly higher super savings than males on the same income," said Whiteley.
"Clearly women, with the benefit of higher discretionary incomes and attractive tax incentives can be better super savers than their male peers."
If female school or university students volunteer for work experience in finance, organisations have a “duty” to offer it to them, according to a senior funds management executive.
New research from Aware Super on the occasion of Equal Pay Day reveals Australia’s 13 per cent gender pay gap will equate to a $93,000 deficit in women’s super balances compared to men at retirement.
With only 25% of women currently using a financial adviser and many lacking financial confidence, they are losing thousands in superannuation.
The significant difference in women’s average superannuation account balances, compared to their male counterparts, continues to concern industry professionals.
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