Transcript Tax and welfare, fairness and gender equity

Gender equality, tax and welfare systems
Putting women at the centre: A policy forum
Tuesday 16 August 2016
Miranda Stewart
Professor and Director, Tax and Transfer Policy Institute
Crawford School of Public Policy
[email protected]
www.austaxpolicy.com
https://taxpolicy.crawford.anu.edu.au/
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Gender impact analysis
• Examines effects of tax, spending and economic
policy and disaggregates the effects by gender
• Examines individuals not households
• Make visible the different circumstances and
economic contributions of women and men (and
different sub-groups)
• Takes into account the paid (market) and unpaid
(nonmarket/care) economies
• Empirical analysis informs policy
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Gender impact analysis matters to…
• Administration of policy: Is it delivered to the right
people?
• Effectiveness of policy: a policy may not have
targeted effect if not designed for impact on
differently situated men and women
• Efficiency of policy including tax and spending:
different incentive and constraints on work, saving,
social behaviour
• Equity or fairness: horizontal (equals) and vertical
(high-low income)
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Paid and household (unpaid) work
• See ABS Gender Indicators (2006 survey)
• Paid and unpaid work
– Men daily average 4.33 hours on paid work and 2.52
hours on unpaid work
– Women daily average 2.21 hours of paid work and 5.13
hours on unpaid work
• Do policies
– Reinforce or breakdown the gendered division of labour
between paid and unpaid work?
– Promote sharing of unpaid work?
– Promote gender equality in paid work?
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Big picture: fiscal sustainability and
effective taxation is important for
gender equality
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Cth Budget 2016-17; PEFO: Fiscal deficit
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Total revenues 2016-17 $416.9 billion
(taxes: $391 billion)
Total expenses 2016-17 $450 billion
Tax to GDP Cap (bipartisan) 23.9% of GDP (applied from 2021-22)
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6/04/2017
2016-17: Cth Government Expenditures
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Types, trends in transfers % GDP
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Cth Budget 2016-17: “credible path to
surplus”
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6/04/2017
Women and paid workforce
participation; tax and welfare policies
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Workforce participation by gender
90%
85%
80%
Male
75%
70%
65%
60%
55%
50%
Female
45%
40%
35%
30%
25%
20%
1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
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Women’s workforce participation
Per cent
70%
60%
50%
Part-time
40%
30%
20%
Full Time
10%
0%
1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
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Marginal, average PIT rates 14/15
Top 1%
taxable
income
Male
Female Median
Median
Top 10%
taxable
income
Min.
Wage
Female Av. wage
Male
Av.wage
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6/04/2017
Budget and election tax measures
• “Bracket creep” tax cut for average FTE
earnings ($80,000) will mostly benefit men
• Not extending the budget deficit repair levy
of 2% at top end similarly
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What has happened to childcare, family
payment, parenting leave policies?
• Budget and election policies lock in $13 billion
in cuts to family payments, paid parental leave
and cuts to income support for young people
from last year's budget and adds further $3 billion
in cuts
• The introduction of $3.3 billion child care package
has been delayed for a year and is tied to cuts in
family payments and paid parental leave (PPL).
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Childcare, work, high EMTRs (sole parent)
Sole parent, 2 kids 2/3,
wage $62,000 FTE
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Childcare, work, high EMTRs (in couple)
Primary earner $50,000, secondary earner about $40,000
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Tax, savings and superannuation
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Women have much less super than men
• Women on the whole benefit much less from tax
concessions for saving tied to work
• Only very top income women/in wealthy
households will have ability to “top up” late in life
• Women rely on the age pension
See Senate Report, Achieving Economic Security for Women in Retirement ‘A husband
is not a retirement plan’and
submissionshttp://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Eco
nomics/Economic_security_for_women_in_retirement
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Tax concessions for super: Who
benefits?
Source: Murray (2014 Chart 6 p 138). The data comes from Treasury calculations based on 2011-12 data
from the Australian Tax Office.
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Average superannuation
account balance by gender
Percentage of women and men with no
super, 2011-12
Percentage of individuals with >$100K in
super 2011-12
Total superannuation assets, by gender
of account holder, 2011-12
Estimated super age 64-66, 2051, % of
2006 dollars, different households
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Percentage of baseline
90
80
70
60
50
40
30
20
10
0
Spent 40+
years in
labour force
Average
super
balance
Person with
moderate
disability at
age 44-46
Less than Women with Mother with Mother with
Year 12
children
moderate
less than
education
disability at
Year 12
age 44-46
Source: Productivity Commission (2015) using NATSEM analysis: Keegan, Harding and Kelly (2010).
Superannuation: Budget 2016-17
• Overall package is good (but does not go far enough)
• $1.6 million tax-free earnings balance cap (retirement phase),
effective 1 July 2017
• Concessional (deductible) contributions
– Capped at $25,000 per year (down from $30,000) to be taxed only
at 15%
– 30% tax on nonconcessional contributions
• $500,000 nonconcessional contributions lifetime cap (effective
3 May 2016)
– (but count contributions back to 2007)
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Low income superannuation tax offset
Catch-up concessional contributions over 5 years
Low income spouse contributions
Annuities policies
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Some useful resources
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NFAW Gender Lens, http://www.nfaw.org/gender-lens-on-the-budget/
Patricia Apps quoted in Nassim Khadem, SMH,
http://www.smh.com.au/business/workplace-relations/want-to-reduce-the-gender-pay-gaptax-the-rich-more-20160808-gqnthc.html
UK Women’s Budget Group http://wbg.org.uk/
Scotland Women’s Budget Group http://www.swbg.org.uk/ “Gender edit” of Draft Scottish
Govt Budget http://www.engender.org.uk/content/publications/Engenders-Gender-edit-ofthe-Scottish-Government-draft-budget-2016-17.pdf
Monica Costa, http://www.austaxpolicy.com/gender-responsive-budgeting-at-the-oecd/
Miranda Stewart, https://theconversation.com/gender-neutral-policies-are-a-myth-why-weneed-a-womens-budget-55231
Helen Hodgson, http://www.austaxpolicy.com/978-2/ (on superannuation)
Rhonda Sharp and Ray Broomhill, A Case study of gender responsive budgeting in
Australia (2014) http://apo.org.au/resource/case-study-gender-responsive-budgetingaustralia
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