Invest
How changing childcare subsidies could reduce the gender gap
Despite women and younger Australians being most impacted by the COVID-19 pandemic, they are still being left behind from a policy perspective, according to new research.
How changing childcare subsidies could reduce the gender gap
Despite women and younger Australians being most impacted by the COVID-19 pandemic, they are still being left behind from a policy perspective, according to new research.
During an Industry Super Australia webinar, former prime minister Paul Keating pointed out the gender bias in the economy and the superannuation system.
“I think the bias in the system is women’s incomes are relatively low compared to male workers and they are required for domestic and family reasons to not be in the jobs market,” Mr Keating said.
“There is a natural bias in there. The only way to improve that is further and deeper female participation in the workplace and, of course, better rates of pay.”
Changing childcare subsidies
The Grattan Institute said it could help solve this problem by creating cheaper childcare, which would help mothers increase their lifetime earnings by $150,000 as well as help boost the nation’s economy by $11 billion.
Increasing the childcare subsidy for low-income families from 85 per cent to 95 per cent and then tapering for households earning above $68,000 could be a key policy measure in recovering from the COVID-19 economic shock, according to the Grattan Institute’s Cheaper childcare: A practical plan to boost female workforce participation.
Under such a scheme, 60 per cent of Australian families would pay less than $20 a day for childcare, with no family worse off.
And while it would cost the government $5 billion a year, the economic payoff of increased female workforce participation would more than eclipse that, boosting Australian GDP by $11 billion.
“Cheaper childcare is a win-win – it would boost the economy and give Australian women enhanced life choices,” said lead author Danielle Wood.
“It should be central to the government’s plans for lifting Australia out of recession.”
Australia’s female workforce participation rate is above the OECD average, but Australian women are much more likely to work part-time. Before the COVID crisis, a typical Australian woman with pre-teenage children worked 2.5 days a week.
Women in Australia continue to do most of the unpaid household work, which further constrains their choices about doing more paid work.
The federal government should extend the parental leave scheme to offer six weeks “use it or lose it” leave at minimum wage for each parent, plus 12 weeks they can share between them. This would cost an extra $600 million a year, but would help fathers spend more time with their children in the critical first year of the child’s life.
About the author
About the author
Economy
COVID consequences ‘will come home to roost’
Markets are enjoying an easy ride despite the economic damage wrought by COVID-19, but “there will be a reckoning”. ...Read more
Economy
Global economy predicted to pause before soaring in 2021
2021 will provide investors the opportunity to cash in on private markets and businesses hurt, but not permanently damaged, by the pandemic as accommodating policies and pent-up demand drive global gr...Read more
Economy
5 predictions for the Australian economy in 2021
The Australian economy is tipped to be one of five nations to outshine, with a win on the health front likely to act as tailwind, a new report has revealed. ...Read more
Economy
Deloitte calls vaccine a ‘game changer’ as 77% of Aussies welcome jab
As many as three-quarters of Aussies are willing to be vaccinated once a new coronavirus vaccine becomes publicly available, new research has revealed, as Deloitte Access Economics calls the vaccine ...Read more
Economy
Markets react to Biden’s stimulus package
The US markets have reacted negatively to President-elect Joe Biden’s US$1.9 trillion ($2.44 trillion) bailout proposal, amid mass job losses as the US continues to struggle with the COVID-19 pandem...Read more
Economy
‘Aussies to keep economy ticking with $200bn in savings’
The government is counting on Aussies to use their savings to drive economic recovery once temporary support measures are wound back at the end of March. ...Read more
Economy
Business improves but COVID threat remains
The Australian economy continues to show signs of life, with businesses’ payment times improving despite recent outbreaks of COVID-19, new research has revealed. ...Read more
Economy
10 impacts the US ‘blue wave’ will have on investors
With the US Senate run-off falling to the Democrats, a new blue wave is spurring optimism for investors, a chief strategist has said. ...Read more
Economy
COVID consequences ‘will come home to roost’
Markets are enjoying an easy ride despite the economic damage wrought by COVID-19, but “there will be a reckoning”. ...Read more
Economy
Global economy predicted to pause before soaring in 2021
2021 will provide investors the opportunity to cash in on private markets and businesses hurt, but not permanently damaged, by the pandemic as accommodating policies and pent-up demand drive global gr...Read more
Economy
5 predictions for the Australian economy in 2021
The Australian economy is tipped to be one of five nations to outshine, with a win on the health front likely to act as tailwind, a new report has revealed. ...Read more
Economy
Deloitte calls vaccine a ‘game changer’ as 77% of Aussies welcome jab
As many as three-quarters of Aussies are willing to be vaccinated once a new coronavirus vaccine becomes publicly available, new research has revealed, as Deloitte Access Economics calls the vaccine ...Read more
Economy
Markets react to Biden’s stimulus package
The US markets have reacted negatively to President-elect Joe Biden’s US$1.9 trillion ($2.44 trillion) bailout proposal, amid mass job losses as the US continues to struggle with the COVID-19 pandem...Read more
Economy
‘Aussies to keep economy ticking with $200bn in savings’
The government is counting on Aussies to use their savings to drive economic recovery once temporary support measures are wound back at the end of March. ...Read more
Economy
Business improves but COVID threat remains
The Australian economy continues to show signs of life, with businesses’ payment times improving despite recent outbreaks of COVID-19, new research has revealed. ...Read more
Economy
10 impacts the US ‘blue wave’ will have on investors
With the US Senate run-off falling to the Democrats, a new blue wave is spurring optimism for investors, a chief strategist has said. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
