Major Report Urges Immediate Increase in Paid-Parental Leave & Super, Targets Gender Pay Inequity
A major report released by the Women Economic Equality Taskforce (WEET) has called for urgent action from the Australian government to address gender pay inequity and support working parents. The report recommends adding superannuation contributions to paid-parental leave and extending the leave period to 52 weeks over the next decade. The proposed measures aim to alleviate the financial burdens faced by women after having children and reduce the gender pay gap.
One of the key recommendations is the establishment of universal childcare, ensuring that all families have access to affordable and high-quality childcare services. The report also suggests introducing a tax offset for individuals with caring responsibilities who are re-entering the workforce, aiming to counteract the motherhood penalty that many women face.
Currently, women in Australia engage in 43% less paid work than men, but spend 81% more time on unpaid work, such as caring for children and household chores. This disparity has a significant impact on women’s capacity to participate fully in the workforce and their earning potential. The report highlights that women’s earnings decrease by 55% in the first five years after having their first child, while men’s earnings remain unaffected.
The gender pay gap persists throughout a woman’s lifetime, with the average woman earning $1 million less than the average man over her career. If this inequality continues, a 25-year-old woman who becomes a mother can expect to earn $2 million less than a 25-year-old man who becomes a father.
The report emphasizes the need for government leadership in dismantling systemic barriers and creating an environment that values and supports women’s economic contributions. It calls for the government to embed gender equity into budgeting, decision-making, and policy design. The establishment of an independent national women’s economic equality advisory body is also proposed to oversee the implementation of the report’s recommendations.
While new laws were recently introduced to expand paid parental leave to 26 weeks by 2026, the report argues that much more needs to be done to address gender inequality in Australia. It urges the government to take immediate action by adding superannuation contributions to paid-parental leave, extending the leave period to 52 weeks, and investing in universal childcare.
The report concludes by stating that a genuine commitment to respecting women, removing systemic barriers, and valuing their economic contribution is vital for creating a more equitable society. It calls on the government to prioritize the well-being of women and improve their lives, as well as take steps to address gender segregation and increase the representation of women in senior positions.
The Women Economic Equality Taskforce’s report highlights the urgent need for concrete measures to tackle gender pay inequity and support working parents in Australia. It remains to be seen how the government will respond to these recommendations and prioritize the economic equality of women.
