1. Good morning. I am so pleased to be here with you today as you embark on a day of discussing issues that are important to women and our nation, as you develop ideas for policy, and as you form and strengthen a support network for one another.
2. I have been asked in my capacity as Minister for Revenue and Assistant Treasurer to discuss the economic independence of women. I would like to use this opportunity to talk about the challenges that women face when striving for economic independence, the policies that are helping women achieve that independence, and to talk briefly about some of my own experiences.
What is economic independence?
3. When we talk about economic independence for women, what do we mean? Is it disposable income, or the ability of a woman to support herself, or to assist her family? Does it mean having access to affordable childcare facilities that allow a woman to work whilst rearing children? Does it mean income security in retirement or the ability to acquire capital for a business venture?
4. I think that it can mean all of these things and more for different women. The issue is that our society must have an economic, social and political environment that allows for all of these possibilities, that allows for the individual woman to get through life without the economic struggles of our grandmothers and some of our mothers.
5. Dr Jocelynne Scutt, the Anti-Discrimination Commissioner of Tasmania, author and lawyer, has said
-
- "Economics without reference to the real abilities, productivity, needs and humanity of people is bereft of relevance" (From "Women and the Economics of Power" Keynote address to Women's Employment, Education and Training National Symposium, Swinburne University 1993)
6. Increasing opportunities to develop the abilities and productivity of women have seen us gain economic independence in leaps and bounds. Core to this independence is education:
-
- More girls than boys complete education to Year 12 level
- More women than men participate in higher education overall
7. Women are also increasingly participating in vocational education, such as apprenticeships. The number of women undertaking New Apprenticeships grew from 24,500 in 1995 to almost 95,000 in December 2000.
8. This higher level of education is a marked change from the times of our grandmothers, as is the number of women in the workforce:
8.1 - Women are participating in the labour market at the highest rates in Australian history. Australia was a pioneer country in bringing about the vote for women and we were at the forefront of developing Sex Discrimination legislation. These early legislative measures were crucial to the advancement of women in our society.
9. We now expect and get promotions, pay rises, and redress where our rights are infringed. The statistics on the workforce bear this out:
-
9.1 - Since 1978 the labour market participation rate has climbed from around 43 per cent to more than 55 per cent today. And the outlook is for this participation rate to rise.
9.2 The economic growth of recent years has created more jobs. Under this Government, the number of women in full time jobs has grown by 161,000 and the number of women in part time jobs has grown by more than 330,000.
10. The gap between men's and women's salaries is narrowing. Since 1983 average fulltime earnings for women have consistently grown faster than those for men. Since 1996, this trend towards a closing gap has accelerated, with earnings in some industries growing more than one per cent faster than those for men.
But where are women found in the workforce?
11. Women are still not as prolific in the public eye as heads of industry, senior public servants, or in high profile management positions as we might expect.
12. Despite the huge leaps forward for women in law, medicine and politics, few women are in real leadership positions. We have covered important ground by getting more women in the workforce, but it has been a long time coming.
13. The representation of women in the Commonwealth Parliament is nearly double the international average. Women now represent 26.1% of the Commonwealth Parliament - an increase from 14% in 1995 - while the international average is currently 13.4%.
14. Women are increasingly contributing to high level decision making on Government, but there is clearly room for improvement. Women now occupy 33.8% of positions on Commonwealth boards, up from 30.5% in 1995.
15. In the private sector, traditionally the male domain, the number of women holding director positions has risen from 4% in 1996 to 10% in 2000.
16. Women hold 24.7% of private sector managerial positions as at November 2001 compared to 17.2 percent in 1990.
17. In small business, where female ingenuity and intelligence pays off, 33% of Australia's small business operators are women.
18. Self-employment through small business offers flexibility, independence and other benefits that may not be available as an employee. Small business is community-oriented. It's our neighbours, friends, cousins - those who know our communities and its needs best - attending to us. It's a testament to trust, commitment, and service, which large businesses simply can not fulfil. Small businesses understand who we are.
19. Economic independence is a powerful image but we have a long way to go to develop true role models for our sons and daughters, to show them that women can lead and excel in all disciplines.
20. We need to reach out to all women, especially those who are isolated by home-carer duties or those in rural areas. The incredible power of the internet is a force that we must tap into to enhance economic opportunity. In November 2000, 53% of internet users in Australia were male and 47% were female. (This compares favourably with other countries such as Sweden 44% and the UK 36%). An important initiative of this Government has been to establish Networking the Nation programme that improves access to computer hardware and essential training on the web for people in rural or regional Australia. (information can be found on the DCITA website).
Do women still face glass ceilings?
21. In the new industrial relations world of enterprise bargaining women do need to develop skills that make them `step-up' and represent themselves.
22. Well, we now have more equality of opportunity, we now have the Sex Discrimination Act, and we have more women being heard. But we still need a grass roots support base that will encourage all women to know that they must be counted.
23. But as we push our daughters out into the world, will they hit glass ceilings where everything appears neutral but where there is an invisible barrier preventing them from advancing?
24. Will there be a double brick wall where the only way to go is sideways to gain experience and serve time?
25. Will there be `sticky steps' - glass ceilings at different levels to make it difficult to advance at anything that seems like a reasonable pace?
26. Will there be `gluey chairs' where a woman is so good at her job that everyone wants her to stay there? This is the sort of woman where an enthusiastic boss says "she's so good I'd be lost without her' in sharp distinction to male attitudes where it goes something like this, "He's a damn good manager, we have to promote him in order to keep him".
27. This leads me to ask What workplace reforms has the Howard Government introduced to assist women achieve a better working environment?
28. The Workplace Relations Act helps to protect women in the workplace by providing for
28.1 -equal remuneration for men and women for work of equal value
28.2 - removing restrictions on the availability of part-time work
28.3 - ensuring that part-time workers, most of whom are women, receive pro-rata entitlements and greater job security
29. At times there have been criticisms, but the legislation is working. The recent Report on Agreement-making in Australia found that 76% of collective agreements in 1998 and 1999 contained one or more family-friendly measures.
30. The Howard Government shows its dedication to women in the workplace not only through legislation but through specially targeted programmes. Childcare is an issue that I am always concerned about because it allows a parent to fulfill herself both in the home and in the wider community.
31. Child Care Benefits is a major way that this Government is assisting families with the cost of childcare.
32. Liberal Party women have fought for and gained recognition from the very earliest days - from negotiating for equal representation in Liberal Party decision-making, to supporting community initiatives in social welfare and industrial relations. Liberal women have been there from the start and we're continuing their great tradition.
33.- Dame Margaret Guilfoyle is a wonderful example of this tradition. In 1975 she was the first woman Senator to be a member of Cabinet and to administer a Government Department. In this instance she was given the Finance Portfolio - a male bastion at that time if ever there was one!
34. Given the right opportunities women can make a difference to achieving economic well being for women and the community as a whole.
35. Australia has a long history of policy and legislative reforms that have improved the opportunities that women have in our society. However, theory and practice of social policy have rarely taken full account of the relevance of gender. There needs to be an understanding of how social policy affects women, and how women's welfare is directly impacted by how well government understands and responds to their needs.
36. During the Election the Government announced a raft of policies designed to meet the needs of women.
37. For example, the Government has a very proud record of improving the welfare of Australian women, both through the superannuation system and through taxation reforms.
Superannuation
38. Not surprisingly I have for many years been interested in the relationship women have with superannuation and their ability to save for their retirement. Women's increased workforce participation over the past decade means that many women will have better retirement incomes in the future. However, interrupted careers and fragmented work patterns inhibit women's capacity to save for retirement.
39. I am committed to the implementation of a significant initiative that recognises the changing needs of women.
40. One of the hardest times financially for families comes with the birth of their first child. In recognition of the contribution made by women leaving the workforce to have and raise children, we have introduced the First Child Tax Refund, or "baby bonus" as it is colloquially known, up to a maximum of $2,500 per year over five years. Low income earners will not miss out with a minimum $500 rebate for a parent earning less than $25,000 in the assessment year. This proposal will repay a parent who acts as the primary carer after the birth of their first baby born after July 2001.
41. We also want to use the `baby bonus' to promote a wider national savings culture, that allows the recipient of the bonus to make that contribution to her superannuation.
42. The Government is also committed to giving financial security in retirement to both parties of a marriage. From 1 July 2003 superannuation contributions will be able to be made by one spouse into a separate account in the other spouse's name.
43. Traditionally, unpaid domestic work has been seen as economically unproductive. This Government's initiative to allow couples to split future superannuation contributions recognises that a partner who works in the home, or is a low income earner, does make a significant contribution to building a family's assets. These efforts are recognised economically through this splitting measure by giving more certainty to the partner as he or she approaches retirement age.
44. This initiative builds on the 18 per cent tax rebate for up to $3,000 of superannuation contributions made on behalf of a low income or non-working spouse. The rebate was introduced by the Government in the 1996-97 Budget and allows women with no link to the workforce to have their own superannuation.
45. The Government has also acknowledged the inadequacies of the treatment of superannuation on the dissolution of marriage by amending the Family Law Act.
45.1- As a lawyer who practised family law in my early career, this is one that I am particularly pleased with. The amendments, which are expected to come into effect later this year, will allow a married couple to split superannuation interests between themselves on their separation. Couples will be able to enter into an agreement on how best to divide superannuation between them, taking into account their individual circumstances.
45.2 .2 If they are unable to agree, the Family Court will be able to order a split of the superannuation. This process will see many women with superannuation being held in an account in their own right.
46. More generally, the Government's election commitments are designed to significantly improve the overall attractiveness, accessibility and security of superannuation.
47. The Government is reducing the superannuation surcharge from 15 per cent to 10.5 per cent over the next three years. It is increasing the fully tax-deductible threshold for superannuation contributions by the self employed and introducing a Government co-contribution of up to $1,000 a year for personal contributions made by low income earners.
48. These initiatives significantly increase the incentives for all Australians, including women, to save for their retirement. In particular, the Government co-contribution will help women on lower incomes to increase their retirement savings by making voluntary contributions to superannuation.
49. A recent survey published by the Australian Bureau of Statistics shows that more than one million Australian women have multiple superannuation accounts. Multiple accounts can diminish the retirement savings of women through unnecessary fees and charges.
50. Many women will therefore benefit from the implementation of the Government's choice of funds and portability policies. These policies are designed to provide Australians with greater ownership and control of their retirement savings. They will enhance competition and efficiency in the superannuation industry, leading to reductions in fees and charges, and will deliver better retirement outcomes for many Australians.
Taxation
51. Women are major beneficiaries of the Government's new tax system.
52. A key objective of the families package introduced under The New Tax System has been to provide families with greater choice. The Government has achieved this through:
52.1- increased family benefits and tax cuts for all working families;
52.2- greater recognition of single earner families through increases in benefits; and
52.3- increased child care assistance for two income families.
53. Older women have made an enormous contribution to our society. This has been recognised through such measures as higher tax rebates and increased Medicare levy threshold which took effect from the 2000-01 financial year, with the result that senior Australians have been receiving the benefit of these changes in their tax returns since 1 July 2001.
54. In 1995-96, before the Coalition came into office, an independent retiree of Age Pension age with income of $20,000 would have had a tax liability of $3,070. Now, an independent retiree on the same income would have a zero tax liability.
55. In another major initiative, the Coalition has extended the eligibility for the Commonwealth Seniors Health Card in 1999. Approximately 50,000 independent retirees are expected to benefit from this measure.
56. It is my job to keep these reforms on track and ever growing. Of course, it is my role to represent the whole community and in that light I see my three main challenges in tax reform as:
-
56.1- Considering ways to improve the efficiency and effectiveness of tax administration, including through setting up the Inspector General of Taxation;
56.2- Implementing the Government's remaining business tax reforms arising from the Ralph Business Tax Review, including the introduction of the consolidation regime for company groups; and
56.3- Designing and implementing the superannuation and other tax initiatives outlined by the Government during the election campaign.
57. I have the additional and large responsibility of insurance, an issue that affects us all and is in the spotlight daily. I recently chaired a Ministerial Meeting between the Commonwealth, States and Territories to examine ways to address the affordability and accessibility of public liability insurance. We are examining the scope for a nationally consistent approach across jurisdictions. This meeting was a real success and is being followed up with a further meeting in May where we will be looking to progress some substantive measures to address the issue.
58.Despite significant new measures there is still a lot to be done to improve the economic and social opportunities for women. Women still often have to choose
-
- between career and family
- between quality of life and punishing work hours
- between a balanced lifestyle and total commitments to goals
- between embracing a male executive lifestyle and struggling for a more hospitable women-friendly work environment
- And between being confident and brash
59. One of the critical factors facing women in authority and women in leadership and that will ultimately distinguish one from another is the role played by ambition.
60. It is not very surprising that some of these choices that need to be made are not very attractive to most women. One comfort is that in the brave new world of the new millennium we can influence change.
61. Those of us who have leadership positions must do what we can to bring about a vision that will allow women to seek economic independence, to have the freedom to reach their full potential as members of the broader community.
62. Charlotte Perkins Gilman, the early American feminist author wrote in her story The Yellow Wallpaper about a woman who is diagnosed with hysteria and for whom total "rest" has been prescribed. Eventually the woman does go mad because of her lack of intellectual stimulation! This might be an apocryphal story but it underscores the need for us to be ever vigilant in spotting the opportunities for women to achieve independence - political, social and economic independence.
63. Today I throw out the challenge to you, I ask you all to think about policies that will help further the gains we have made to achieve a truly egalitarian and independent nation of Australians.
64. The big difference is that we now have a few women in a position to be able to do something about it!