Disadvantaged in four ways

The report said women were disadvantaged to men in four ways: lower pay rates for work of comparable value, smaller superannuation payouts, strong disincentives for professional women to increase their working days and continued low representation on company boards and in senior executive positions.

Loading

KPMG Australia chairman Alison Kitchen said the whole of society would benefit if womens' participation rates lifted.

"Women make up just over half of the Australian population yet, on average, they are paid $26,000 less per annum than men,” she said.

"Female superannuation payouts are currently 50 per cent less than those of males."

The report also notes Australian women experience high effective marginal tax rates when moving from three or four days a week to full-time work due to the loss of family and child benefits.

Every additional dollar of income kept after income tax is deducted is reduced, and the means-tested family tax benefits are withdrawn.

The report takes the example of a professional working mother earning the full-time equivalent of $100,000 annually.

In moving from three days per week to four, this professional woman would obtain additional disposable income of just $14.50 per hour – less than the minimum wage.

If she moved from four to five days per week, her household would be worse off by more than $10 for each extra hour she worked.

Costs of parenthood

KPMG tax partner Grant Wardell-Johnson said the costs of parenthood were borne by women but the benefits of parenthood were enjoyed by the whole of society.

“If we halve the difference between male and female participation rates our household disposable income would be $38 billion greater," he said.

The report suggest various policy changes, including ensuring women are not penalised for taking time out when they are pregnant. The report backs calls to require employers to pay the superannuation guarantee on Commonwealth Paid Parental Leave.

To help women with lower superannuation balances achieve a more comfortable retirement, it suggests the federal government should remove a $450 minimum income level for superannuation guarantee payments.

Currently if employers pay an employee less than $450 per month, they do not have to pay them the 9.5 per cent superannuation guarantee. This leaves casual workers - mostly students and women - worse off.

The report also suggests reviewing the Fair Work Act to ensure that Equal Remuneration orders can be easily obtained when there are gender pay equity issues.

In recognition that the gender pay gap exists, Fair Work Australia can currently make equal remuneration orders to ensure that there will be equal pay for work of equal or comparable value. An employer that contravenes the order may face a penalty.

But a 2016 Senate Committee report found that it was a lengthy and resource-intensive process for a worker or a trade union to bring an action to obtain order, and that very few had been successful.

“The committee’s recommendation, which KPMG supports, is that the process should be improved to make it more accessible and less burdensome for applicants,” Mr Wardell-Johnson said.