early access —late consequences? - university of melbourne

Early Access — Late Consequences?A Quantitative Study into the Effects of the COVID-19 Early

Release Scheme on Young Women’s Superannuation Savings

Ella Longhurst2020

2

Ella [email protected]

Cover Page

Title Page

Table of Contents

Executive Summary

Introduction

Chapter One: Literature Review

Chapter Two: Methodology

Chapter Three: Results

Chapter Four: Discussion

Conclusion

Recommendations

References

Ella Longhurst, The Policy Lab| Early Access — Late Consequences? A Quantitative Study 4

Contents1

1

4

5

7

8

14

19

28

28

30

5

Executive Summary

The purpose of this report is to criticallyanalyse the effects of the Early ReleaseScheme (ERS) on the potential retirementsavings of young Australians. This reporthas employed a feminist critique to analysehow gender and broken work patternsexacerbate the financial losses made fromthe ERS scheme on overall potentialretirement savings. The Coronavirus (covid-19) pandemic has brought social andeconomic devastation across the globe.Australia had its first confirmed case on the19th January 2020. Since then, the Federaland State governments have theimpossible task of balancing public healthand economic recovery. The ERS was oneof the social provisions rolled out by theFederal Government under the CoronavirusEconomic Response Package Omnibus Bill2020. The ERS saw individuals able toaccess up to $20,000 of theirsuperannuation in two separate rounds ifthey met specific eligibility requirements.This report utilised the methodology ofsocial science microsimulation to projectthe estimated lifetime superannuationearnings of five hypothetical individuals.These individuals were assigned differentgenders and had varying involvement inthe labour market.

This model was then used to reflect theimpact of various superannuationwithdrawals at the age of twenty-five toassess the financial impact across allindividuals. It was found that being young,female, and having low labour marketinvolvement, made you the mostfinancially vulnerable after utilising theERS. This report makes two policyrecommendations. Firstly, futuresuperannuation policies should ensure theyhave tailored information for young peopleto increase superannuation knowledge.Secondly, future superannuation policiesshould employ a gender-sensitive approachto ensure gendered inequalities insuperannuation are made visible. Thisreport concludes the ERS has significantand long-term financial consequences.Furthermore, these consequences have adisproportionate effect on women,especially women who spend time out ofthe workforce or work part-time.

Ella Longhurst, The Policy Lab| Early Access — Late Consequences? A Quantitative Study

7

Introduction

APRA (2020) reveals that about $31.1billion of payments have been made toover three million applications, withthe average payment at $7,689. Theunprecedented level of earlysuperannuation withdrawal requiresfurther investigation. Furthermore,McKeown (2020) highlights that fortypercent of ERS applicants were agedbetween twenty-five to thirty-four,with women clearing a largerproportion of their superannuationsavings. Thus, this report aims toinvestigate the financial impacts onyoung people who withdrew from theirsuperannuation using the ERS, with aspecific focus on the impact of womenwith different labour patterns. Thisreport argues that the ERS was agender-blind social provision, whichhas exacerbated entrenched genderedinequalities and contributed towidening the superannuation gap intothe long-term future. The nature of thisstudy aims to investigate the financialimpacts of the ERS and who is mostvulnerable in withdrawing theirsuperannuation early. Thisinvestigation will be done from Augustthrough to November 2020, through aseries of social sciencemicrosimulations. These simulationsprovide insight into the financial lossesacross different individuals. Thus, thefinancial impact can be cross-comparedand analysed in a broader contextualdebate around gender inequality andthe superannuation gap.

In December 2019, the World HealthOrganisation (WHO) was alerted to theemergence of an unknown etiology,later named covid-19, in WuhanProvince, China (Lee 2020). Covid-19rapidly spread across the globeclaiming the public’s health andwreaking economic havoc. To date,Australia has had a total of 27,484covid-19 cases and 905 deaths(Department of Health 2020). TheAustralian Federal and StateGovernment(s) have held theimpossible task of trying to balancepublic health whilst ensuring economicprotection and recovery. The publichealth measures attempting to curbthe spread of covid-19 have come atsome detrimental economic costs,including the widespread closure ofbusinesses. These closures have led toa drastic rise in unemployment. On the24th March 2020, the Federalgovernment announced theCoronavirus Economic ResponsePackage Omnibus Bill 2020. This billaimed to provide economic lifelines inanticipation of a rapid reduction inincomes. It provided a series of socialprovisions including the Early ReleaseScheme (ERS), allowing eligibleindividuals to access up to $20,000 oftheir superannuation. Hodgson (2020)outlined that the ERS was meant toprovide an economic lifeline for thoseindividuals not eligible to the socialprovisions of JobSeeker and JobKeeper.


This report is divided into five chapters.Chapter one will synthesise pre-existingliterature to ground this research in itssocial and cultural context. Chapter twooutlines the methodology undertakenin the production of this report. Toanalyse the financial impacts of theERS, social science microsimulation wasemployed to project the lifetimesuperannuation earnings of fivehypothetical individuals. Chapter threepresents the quantitative resultscollected in this report. Chapter fourplaces the results collected within abroader contextual debate. Chapterfive will provide the future policy andacademic recommendations concludedfrom this report. Finally, a conclusionwill be provided highlighting the keyfindings and overall remarks on thefinancial impacts of the ERS, specificallyits impact on women.

8

Chapter One:Literature Review

9

Feminism and economics

Therefore, the structure of gender can becritiqued, and challenged. Woolley (1993)highlights that feminist economicsaddresses gender inequality andandrocentric research strategies, whichaims to bring further attention to genderbiases in economic work. Woolley (1993)reflects how feminist empiricism can helpeliminate sexism through applying tools ofsocial science investigation in an unbiasedway to both women’s and men’sbehaviour. Therefore, feminist economicsallows research to develop a more nuancedand holistic insight into the economicpatterns of men and women. It is hopedthat by employing gender into economicdebate, feminist economics can help drivepolicy change to more equitable solutions.

Bergmann (1990) states that feministeconomists have documented the severityof the problem’s women face in economiclife. Woolley (1993) argues the form ofgender bias which is hardest to counter isthe invisibility of women. Therefore,feminist economics aims to place focus onwhat is not studied (Nelson 1997). Byfocusing on this invisibility, feministeconomics looks at the discriminationwhich derives from a system of socialorganisation which subordinates women.The gender wage gap, gendered division oflabour and the role of women in unpaidcare work are important social spheresoften neglected in mainstream economicstudy. Nelson (1997) highlights thatfeminist theory raises questions about theadequacy of economic practice in providingobjective insight, as it tends to provide adistorted idea of masculinity in its modelsand methods. Robeyns (2000) highlightsthat feminist economics encouragesmethodological pluralism and favoursinterdisciplinary research. Therefore, thechoice of method in feminist economics isdependent on the context and subject oftheir research, often utilising researchmethods from anthropology and sociology(Robeyns 2000). Feminist economicsprovides this research with an imperativeeconomic framework that places thesubject of gender at its centre. By focusingon the relationship between genderinequality and economic behaviour, thisresearch can provide a nuanced insight intothe effects of the ERS on thesuperannuation gap.

Hodgson (2001) claims that mainstreameconomics have continually neglected‘historical specificity’ in their methodology(as cited in Schiffman 2004). Schiffman(2004) argues that mainstream economicsoften lacks the implementation of diverseframeworks, which can help betterunderstand individual behaviour undervarious social and economic systems. Thisovergeneralisation in mainstreameconomics has often meant that data andanalysis is explored through a masculineperspective. Consequently, maleperspectives become viewed as the‘assumed’ or ‘norm’. Nelson (1996)highlights this assumption as an integrallimitation in analysing the economicparticipation of individuals.

The implementation of feminism in thestudy of economics allows us to challengeand question how gender impactseconomic activity. Therefore, feministeconomics conducts systematic genderanalysis of an economic issue (Robeyns2000), placing gender inequalities at theforefront of their research. Bergmann(1990) argues that feminist economicsemphasise the constraint on choice, gendersocialisation, and the social sanctionsplaced on diverse lived experiences.Therefore, feminist economics brings anintersectional approach to the study ofeconomics, bringing to light how specificsystems of social organisation and the roleof institutions work to impede on theeconomic mobility of women. Robeyns(2000) argues that to conduct feministeconomic analysis, a strongconceptualisation of gender is required.Thus, this research utilises Connell (1985)who defines gender as “a social network ofinsights and arguments about connection.This network connects issues including thesocial subordination of women, and thecultural practices that sustain it and thesexual division of labour” (p.261). Connell’s(1985) definition allows this research toview gender as a social structure of powerdynamics.


10

The Gendered Division of Labour and Women’s Economic Patterns

Mackintosh (1978) highlights that thecapitalist process creates subordinatecategories of work, typed by gender.Therefore, we see the division of labourtranscend the dichotomies of family-lifeand employment and a genderedorganisation structure of variousoccupations be produced (Benschop et al.2001). This gendered structure seesspecific industries feminised. Moss (2006)argues this feminisation is justified asspecific jobs require the qualities andcompetencies that are either innate towomen or are acquired due to women’spractice of domestic labour.Consequently, we see a socialconstruction of ‘women’s work’ whichtends to be in lower paid fields and morelikely to be casual or part time.

The amalgam of the division of labour andthe gendered structure of the workforceare integral factors when analysing theeconomic patterns of women. Sincesuperannuation accumulation is heavilyreliant on an individual’s involvement inthe workforce and their salary, it isimportant to look at how gender candisproportionately place women at adisadvantage. The institutionalisation ofgendered roles and responsibilities seeswomen be greatly exploited in thecapitalist labour market. The societalexpectations that see women bear thebrunt of childcare responsibilities canoften result in extended periods out ofthe workforce or leave them more likelyto take up part time employment whichcan lead to a stagnation of salaryincreases. When placing gender at theforefront of economic research, it isimportant to trace the social context inwhich women have been placed. Throughthis acknowledgment of gender roles, thisresearch can make this context ‘visible’ tocritique and challenge it in the context ofthe ERS scheme.

To trace the economic ramifications ofthe ERS scheme on women, it isimportant to have a coherentunderstanding of their labour marketpatterns. Breen and Cooke (2005)argue that while women’s labour forceparticipation continues to rise acrosscountries, the increase in men’s shareof domestic work and childcarecontinues to lag. This lag in equal childresponsibilities and domestic work is aproduct of the gendered division oflabour. Mies (1981) argues that inwestern societies the traditionalstructure of the nuclear family was thefundamental unit of society, whichinstitutionalised heterosexualrelationships. Budwig (2004) arguesthat the roles within the family is thelast bastion of male dominance. Theseheterosexual dynamics see men andwomen socialised into different roles,which supposedly naturally align withtheir physiological and biologicalbuilds.


These gendered assumptions sawwomen socially tied to the home andtheir children due to their inextricablelink to childbearing and breastfeeding,whilst men were seen as the pivotalfamily member who operated in bothkinship and occupational spheres(Budwig 2004). This gendered divisionof labour is justified as theysupposedly meet the expressive andinstrumental needs of families(Budwig 2004). However, thisjustification masks the fact thisinstitutional structure is hierarchicaland non-egalitarian (Mies 1981). Thisnuclear family structure sees womengreatly exploited in the capitalistlabour market. Beneria (1979) arguesthat this division is not ‘natural’ or a‘given’ due to women’s physiologyand is a mechanism of patriarchy thatensures the subordination of women.It must be understood that thegendered division of labour is not asimple division of tasks, as the conceptof labour is usually reserved forproductive work under capitalistconditions (Mies 1981). Thus, thefeminised work of childcare anddomestic work is not regarded aseconomic activity leading it to beunpaid and viewed as inferior.

11

Australia’s Retirement System and the Superannuation Gap

However, Smith and Hetherington (2018)highlight that the debate aroundsuperannuation often misses afundamental problem, the system issystematically bias against women. Sincesuperannuation is designed around amodel of employment, the system isgeared to favour individuals with long andcontinued attachment to the labourmarket with men often reaping thebenefits. Volpato (2018) argues thatAustralian women on average haveapproximately half the level ofsuperannuation of men. Thesuperannuation gap between men andwomen has unfortunately taken on thefeatures of a wicked problem astraditional gender roles impede women’saccess to adequate financial security.Smith and Hetherington (2018) outlinethe gender pay gap, over-representationof women in lower-paid occupations,carer responsibilities, unpaid domesticwork, cost and availability of childcare,and casualised work as some of theintegral factors that contribute to thesuperannuation gap. Whilst therepresentation of women in theworkforce has accelerated, therecontinues to be multiple social andeconomic barriers that inhibit women’sretirement security. The superannuationgap is a severe barrier in reaching genderequality as it amplifies gender payinequality by compounding the gap overindividual’s working life (Smith &Hetherington 2018).

Chomik and Piggott (2012) stateAustralia’s retirement incomeprovision system comprises of ‘threepillars’, the means-tested agedpension, mandatory occupationalsuperannuation, and other voluntarylong-term savings. Martin and Xiang(2015) argue that Australia is usuallyregarded as being part of the ‘liberal’world of welfare states. The Australianwelfare state provides low levels ofdirect social welfare with its focusbeing on alleviating poverty. Alongsidethese social provisions, there is aheavy reliance on market-basedprivate provision for individuals toachieve economic security (Martin andXiang 2015). It can be argued thatAustralia’s ‘three pillar’ retirementsystem framework is stronglyconnected to individual’s relationshipwith the labour market.

The first pillar is the means-testedaged pension, which was introduced in1909 (Martin & Xiang 2015).Traditionally, the pension was themain source of government provision,which provided a means-testedpayment generally indexed to twenty-five percent of average weeklyearnings (Edey & Simon 1998).Eligibility for the pension is subject tomeans and income tests and is onlyavailable to Australian residents. Edeyand Simon (1998) argue that thepension remains in place to act as asafety net for those who do notaccumulate an adequate amount ofsuperannuation under the new privateprovision system. The pension is non-contributory and is funded directlyfrom general government revenue(Martin & Xiang 2015).

The second pillar is mandatoryoccupational superannuationcontributions. Smith and Hetherington(2018) argue that althoughsuperannuation remains as just ‘onepillar’ of the system, its acceleratedgrowth in the past two decades hasmade it a dominant theme in publicdebate. The superannuationframework provides a system of self-provision through mandatorycontributions by employers intoprivate superannuation funds (Edey &Simon 1998).


These superannuation contributionsare then met with a superfundperformance rate which allowcontributions to incur interest overindividual’s working life. Preston andAusten (2001) highlight thatsuperannuation is the government’spreferred system for the provision ofincome in retirement. Thesuperannuation system strongly linksretirement security to the economicpatterns of individual’s in theirworking life. In 1991, the Laborgovernment introduced an expansionof compulsory superannuation calledthe Superannuation Guarantee Charge(SGC), which established a timetableto increase employer contributions tonine percent by the 2000-2001financial year (Worthington 2005).These contributions are tax deductibleto employers but are subject to afifteen percent tax on entry to thefund (Edey & Simon 2998).

The third pillar is voluntary long-termsavings. This pillar is encouraged by arange of tax incentives, whereAustralians may choose to invest inprivate retirement funds (Martin &Xiang 2015). Yates and Bradbury(2010) highlight that this additionalsaving is supported by tax concessionsthrough tax advantaged retirementsavings accounts and through capitalgains tax relief for those who investpart of their sales intosuperannuation. This third pillar aimsto recognise Australians investing intoassets (Yates & Bradbury 2010).

As stated previously, the second pillarof occupational superannuationcontributions has become the mainpolicy focus in Australia’s retirementsystem. Superannuation reflects apolicy shift in ageing fiscal policy, withthere now being a focus on theaccumulation of a pool of savingscollected over an individual’s workinglife. The system of superannuationwields multiple benefits. Firstly, itallows for individuals to accumulate asignificant amount of savings that islocked until retirement and ensures itis not spent in the short-term.Secondly, it comes with significant taxadvantages with its low tax rate offifteen percent.

12

Covid-19 and the Early Access Scheme (ERS)

In December 2019, the World HealthOrganisation (WHO) was alerted tothe emergence of an unknownetiology, now known as covid-19, wasdetected in Wuhan Province, China(Lee 2020). By the end of January2020, 9720 cases of covid-19 wereconfirmed throughout China (Lee2020). Covid-19 rapidly spread fromneighbouring countries such as Japanand Vietnam to more distantcountries, with Australia confirming itsfirst covid-19 case on the 19th January2020 (Hunt 2020). Covid-19 hasravaged the globe, with itsramifications having severe impactson public health and the economy. ByOctober 2020, the globe has sufferedthirty-seven million cases and justover one million deaths (WHO 2020).


O’Sullivan et al. 2020 states thatAustralia has been labelled as amongthe more successful countries inslowing the spread of covid-19. Thissuccess has been attributed to acombination of factors includingpolitical stability, national wealth, andgeographic isolation (O’Sullivan et al.2020). Andrew et al. (2020) arguesthat Australians have witnessed atemporary retreat from market-basedsolutions to interventionistgovernment policies that called forrapid social spending. The CoronavirusEconomic Response Package OmnibusBill 2020 passed the House ofRepresentatives on the 23rd March2020 (Parliament of Australia 2020).This bill outlined a series of measuresthe Federal Government wouldimplement in anticipation for therapid changes covid-19 would bring tothe economy. The announcement ofthe ERS to superannuation was part ofthese measures and was argued to bean economic lifeline for people whowere not eligible for othergovernment support (Hodgson 2020).Early access to superannuation isallowed under specific circumstances,the ERS allowed covid-19 to beincluded under those grounds(Hodgson 2020).

Andrew et al. (2020) highlights thatgovernments are constantly at battletrying to balance the competingimperatives of protecting publichealth and ensuring the conditions ofeconomic recovery. Countries haveimplemented a range of measures tocombat the spread of covid-19,including quarantine measures, strictborder control, physical distancingmeasures, the closure of businessesand restrictions on private and publicsocial gatherings. Consequently, thenation has looked to the governmentfor economic support.

The Australian Government allowedindividuals affected by covid-19 toaccess up to $10,000 of theirsuperannuation in 2019-2020 and alsoallowed a further of $10,000 in 2020-2021 (Australian Government 2020).However, Hodgson (2020) outlinesindividuals must meet one of thefollowing criteria:

1 Be unemployed or eligible to receiveincome supports.

2 The applicant must have been maderedundant or lost at least twentypercent of their working hours.

3 A temporary resident on a skilled workvisa must have had their hoursreduced to zero.

4 Other temporary visa holders must beunable to meet immediate livingexpenses and held a student visa for atleast twelve months.

13

APRA (2020) reveals that about $31.1billion of payments have been madeto over three million applications, withthe average payment at $7,689. Whilstit can be argued that these statisticsreflect the urgent need of suchmeasures for individuals, the ERScomes at a long-term cost and couldhave a disproportionate set ofconsequences to vulnerable groups.Norman (2020) estimates that morethan half a million Australians havewithdrawn their total superannuationsavings during the covid-19 crisis.McKeown (2020) highlights thataround 40 percent of applicationswere made by people under the age ofthirty. A distressing aspect of the ERSis its impact on young people assuperannuation growth is based oncompounding returns over anindividual’s working life (Hodgson2020). The ERS is myopic in this sense,as its implementation was focused attrying to reduce government spendingamidst the pandemic. However, dueto these financial losses for youngpeople, future government will havethe responsibility to fund theseshortfalls in retirement savingsthrough the pension.


Furthermore, the effect of the ERS ishaving a disproportionate effect onwomen’s retirement savings.McKeown (2020) highlights thatwomen are withdrawing a higherproportion of their superannuation aspart of the scheme. As discussedpreviously, women accumulate lesssuperannuation compared to men.Therefore, withdrawals from theirsuper comes at more severe long-termcosts. On average, women havecleared out more of their super,standing at 14% as oppose to 12% ofmen (McKeown 2020). Thesewithdrawals will severely impact andwiden the superannuation gapbetween men and women.

It is also important to note that theramifications of the ERS scheme andits subsequent withdrawals must beanalysed in relation to issues of class.Individuals from low socio-economicbackgrounds are more likely to beexperiencing financial hardship duringthe pandemic and therefore, are morelikely to apply for the ERS scheme.However, due to the structure ofsuperannuation, the less superindividuals have, the less compoundinterest is accumulated which furtherimpacts low socio-economic groupsability to achieve retirement stability.It is crucial to analyse the ERS schemewith an intersectional lens. Thewithdrawing of superannuation fundsdisproportionately effects minoritygroups and places their retirementsavings at greater risk.

14

Chapter Two:Methodology

15

This chapter of the report outlines the data collection and approach employedto draw conclusions on the effects of the ERS on young people’s retirementsavings and the superannuation gap. Firstly, this chapter will outline the stepsundertaken to generate the stated projections. Secondly, this chapter willoutline its limitations and assumptions that were made in the creation of thisproject.

To calculate the lifetime earnings and thus, the lifetimesuperannuation accumulation of five different individuals overtheir working lifetime (21 years to 65 years).

The chosen methodology for this project is social sciencemicrosimulation. Spielauer (2011) argues that social sciencemicrosimulation offers policy researchers a model to assessdistributional and long-term sustainability issues. The purpose ofutilising the methodology of simulation is it allows us to simulate asystem and model its actions to estimate a macro outcome byaggregation (Spielauer 2001).

Aims

1

Objectives

Method

To estimate how each of these projections would be affected byERS withdrawals of $10,000 and $20,000.

2

These projections generate quantitative data that reflects theeffects of ERS withdrawals on young people’s retirement savingsand the superannuation gap between men and women.

3

To generate recommendations for future social provisions thatincorporate gender into its policy framework.

4

To present extensive research that highlights how the ERSexacerbates gender inequality in Australia.

1

To provide future solutions that will close the gap betweengender inequality.

2


16

According to the ABS 2018 data, the typical full-time salary for youngpeople is $58,635.20. However, this data needs to be disaggregated bygender. According to the Workplace Gender Equality Agency (WEGA)the gender wage gap stood at 15.5%. Therefore, we need to inflate theaverage annual salary for men to account for gender wage disparities.We also require estimations on the annual earnings of women workingpart-time to account for various labour force involvement. Bydiscounting the projected earnings figure by a factor of 24/38.5 (this isthe common fraction of part time hours to full time hours) we canproject the earnings of women working part time. The results arepresented below:

Data and Approach


To formulate projections on individuals estimated lifetime earningsand thus superannuation accumulation, this report required thefollowing data: the lifetime earnings of an individual, the proportion oftheir annual income that is occupationally contributed into their superand the effects of compound interest on their running total ofsuperannuation. These steps required the utilisation of data from theAustralian Bureau of Statistics (ABS) and a set of assumptions that willbe articulated below.1 Estimating lifetime earnings

An individual’s ability to accumulate superannuation is heavilydependent on their labour market involvement during their workinglife (Preston & Austen 2001). Therefore, this report requires data onthe average individual’s lifetime earnings. This data was drawn from2018 ABS data of Employee Earnings and Hours.

Age group Average weekly total cash earnings ($)

21 – 34 years 1,127.60

34 – 44 years 1,503.70

45 – 54 years 1,544.20

55 – over 1,373.40

Table 1. Average Weekly Total Cash Earnings Disaggregated by Age, source: ABS 2018.

Since the data is disaggregated by age, we can estimate individual’slifetime earnings. To simplify the next steps, we chose to utilise theABS weekly data to form our own table of annual savings bymultiplying the weekly cash earnings by fifty-two.

Age group Annual total cash earnings ($)

21 – 34 years 58,635.20

34 – 44 years 78,192.40

45 – 54 years 80,298.40

55 – over 71,416.80

Table 2. Estimated Annual Earnings of Individuals Disaggregated by Age, source: ABS 2018.

Age group Men (employed full-time $)

Women (employed full-time $)

Gender wage ratio

(%)

Women employed

part-time $)

21 – 34 years 67,723.6 58,635.2 86% 37,032.7

34 – 44 years 90,312.2 78,192.4 86% 49,384.6

45 – 54 years 92,744.6 80,298.4 86% 50,714.7

55 – over 82,486.4 71,416.8 86% 45,105.3

Table 3. Estimated Lifetime Earnings of Individuals Disaggregated by Age and Employment Type, source: ABS 2018.

17Ella Longhurst, The Policy Lab| Early Access — Late Consequences? A Quantitative Study

The previous stated process is effective as it offers a framework toaccount for variability in individual labour force involvement.However, it does consist of various limitations and assumptions thatmust be discussed.

Firstly, this data utilises the average total cash earnings from the ABS.It does not account for various variables and characteristics such aseducation levels, labour market experience, and English proficiency.This data works off base ideas of wage accumulation disaggregated byage and labour market force involvement. This process, however,could be used to account for these various characteristics but due totime constraints, this report has not.

Secondly, through utilising ABS 2018 data to account for the lifetimeearnings of individuals, this report assumes wage accumulation willstay at 2018 levels. Therefore, this report has not accounted for anyproductivity growth (such as overall GDP levels) over the individual’slifetime.

Limitations and Assumptions

2 Estimation of Superannuation Savings

As stated previously, the Australian retirement income system is ahybrid system, which consists of the age pension, a compulsory systemof private savings through occupational superannuation schemes, andvoluntary savings and contributions (Jefferson & Preston 2005).However, there is now a significant policy focus on occupationalsuperannuation schemes. Therefore, there is an intensified correlationwith labour market involvement and retirement security. Theimplementation of the Superannuation Guarantee in 1992 placedemphasis on this pillar as employers were then required to makepayments of a specific portion of employees’ wages to a complyingsuperannuation fund, the rate of contribution now stands at 9.5% at2015 (Worthington 2005).

To estimate the level of superannuation savings over an individual’sworking lifetime, this report combined the estimated lifetime savingswith several assumptions made about the nature and return of thesuperannuation system. The following assumptions were made toestimate individual’s superannuation savings:

• The superannuation guarantee currently stands at 9.5%. Whilstemployer contributions are set to change over the life course,future inflation to this rate cannot be predicted with currentmodelling.

• In 2000, one-third of all employees aged fifteen to sixty-four yearsmade personal superannuation contributions (ABS 2002).However, these contributions fluctuate greatly depending on ageand income. Since this report cannot model the variables thatcould predict various individual voluntary contributions, weassume there were no individual contributions in our report.

• Superfund performance rate returns are volatile and aredependent on broader economic factors. To calculate a superfundperformance rate, this report calculated the average superfundperformance rate over the past twenty-eight years.1 This ratestood at 7.69 percent and is the assumed rate of return for thisreport.

• Superfund contributions were taxed at fifteen percent whenentering their superannuation fund.

• The age of entering the workforce for men and women is twenty-one.

• The age of retirement for men and women is sixty-five.

• The annual salary of women re-entering the workforce remains thesame as before until they complete the years of that annual salarybracket. However, their wage is still set to decrease at fifty-five.

• When women left the workforce, they were not paidsuperannuation from their employers.2

1 These calculations were made from the SuperGuide2020, there reference is provided in the references

section. The Paid Parental Leave Scheme does not attract the

2 Superannuation Guarantee. Therefore, it is not compulsory for any employer to pay superannuation while

a parent is on paid parent leave (Women in Super 2020).


Data and Approach

This report aims to highlight the effects of the ERS on young people’sretirement savings and the superannuation gap. To formulatepredictions and general patterns, this report has simplified theworking patterns of five different individuals. Each hypotheticalscenario provides us with a framework to explore the effects ofgender, labour force involvement, and early withdrawals madeavailable by the ERS on superannuation savings. To simplify thesehypothetical scenarios, all individuals hold the same level of educationand reside in a metropolitan area:

Name Working Pattern:

Kean (male) and Ella (female)

Kean and Ella enter the workforce full-time at twenty-one and remain until they retire at sixty-five.

Millie (female) Millie enters the workforce full-time at twenty-one. However, has a child at thirty and leaves the workforce until thirty-

seven. Millie then re-enters the workforce full-time until she retires at sixty-five.

Nami (female) Nami enters the workforce at twenty-one. However, has a child at thirty and leaves the workforce until thirty-seven.

Nami then re-enters the workforce part-time until she retires at sixty-five.

Bella (female) Bella enters the workforce full-time at twenty-one. However, has a child at thirty and does not return to the workforce.

Table 4. Outline of data sample, source: this report.

Method

Everyone started at their typical base salary. 9.5 percent of that salarywas calculated to predict employer contributions made every year.These contributions incurred a fifteen percent tax when entering thefund. This amount then encountered an extra 7.69% increase toaccount for compound interest.

X = Total superannuation

R = Annual occupational superannuation contribution

X = R + 0.0769 x R

Name Life-time earnings ($)

Total occupational contributions

($)

Annual interest

(7.69%) ($)

Total Superannuation

Earnings ($)

% of Kean’s Super

Earnings

Kean 3,420,505.60 2,507,668.41 192,839.70 2,700,508.12 100%

Ella 2,961,478.00 2,037,831.84 156,709.27 2,194,541.11 81%

Millie 2,559,986 1,677,629.22 129,009.69 1,806,638.90 66%

Nami 1,887,584 1,484,118.21 114,128.69 1,598,246.90 59%

Bella 586,352 1,063,156.97 81,756.77 1,144,913.74 42%

Table 5. The Overall Lifetime and Superannuation Earnings of Individuals, source: Excel.

19

Chapter Three:Results

20

Key factors in achieving a high income,as reflected in Kean’s overall income($3,686,048.80). Hence, being awoman and having broken workpatterns will be significant barriers inachieving Kean’s income.


The following section provides theresults collected from themethodology process. The resultscollected are reflected in the graphsbelow. Firstly, the projections of theestimated lifetime earnings of the fiveindividuals will be displayed. Secondly,the projections of the estimatedsuperannuation savings over theindividual’s working life are presented.Finally, the projections of estimatedlosses in using the ERS scheme arestated.

Graph one indicates the estimatedlifetime earnings of the five individualsacross their working life (21 – 65years). From the results collected theindividual’s earned the following, Kean$3,686,048.80, Ella $3,191,385.60,Millie $2,631,402.80, Nami$1,932,689.30 and Bella $586,352.00.Graph one highlight that the two mainfactors that impede on individual’slifetime earnings are gender and timein the workforce. According to Graphone at the age of thirty, Kean hasearnt $677,236.00 with all femaleindividual’s income at thirty standingat $586,352.000. This difference in paymeans that all female individuals atthe age of thirty make up eighty-sixpercent of Kean’s income. From theage of thirty-one, we begin to seestark gaps between individual’sincome as Millie, Nami, and Bellaleave the workforce to have children.However, it must be noted Kean andElla both remain in the workforce full-time until they retire at sixty-five, withElla earning eighty-six percent ofKean’s overall lifetime earnings. Thus,graph one highlights how genderimpacts equal pay.

Graph 1. Projection of Individual’s Lifetime Earnings, source: Excel.

Graph one highlights the effects ofleaving the workforce for six yearswhilst raising children but returning tofull-time, Millie’s lifetime earnings($2,631,402.80) standing at eighty-twopercent of Ella’s earnings($3,191,385.60) and seventy-onepercent of Kean’s ($3,686,048.80).According to graph one this gap onlycontinues to dramatically increase ifindividuals enter back into theworkforce part-time. Nami’s lifetimeearnings ($1,932,689.30) make upsixty percent of Ella’s lifetime earnings($3,191,385.60) and fifty-two percentof Kean’s overall earnings($3,686,048.80). The income gapbetween individuals is greatestbetween Kean and Bella, as Bellaleaves the workforce at thirty-one anddoes not return. Bella’s overalllifetime earnings ($586,352.00) is onlyfifteen percent of Kean’s lifetimeearnings ($3,686,048.80). Graph onereflects how the factors of gender andpatterns of labour play a pivotal role inthe gaps between the individual’slifetime earnings. Graph one indicatesthat being male and havingcontinuous full-time employment are


The results from graph one were thenutilised to project individual’s lifetimesuperannuation savings displayed ingraph two. From the results collectedthe individuals earned the following,Kean $2,295,431.90, Ella$1,865,359.94, Millie $1,535,643.07,Nami $1,358,509.86, and Bella$973,176.68. Graph two highlightsthat gender and time in the workforceare two integral factors that affect anindividual’s superannuation savings.Graph two indicates that savingsamongst individuals remain at arelatively equal rate but from the ageof forty-one we begin to seesignificant gaps increase. At forty-onethe individual’s superannuation

Graph 2. Projection of Individual’s Lifetime Superannuation Savings, source: Excel..

This significant gap between Millie,Ella and Kean’s superannuationreflects the substantial effecttemporarily leaving the workforce canhave on your superannuation. This gapamongst individuals begins to rapidlyincrease as their labour patterns andcompound interest become poignantvariables in the increase of theirsuperannuation. Once the individualsreach the age of sixty-five the gapsbetween the superannuation savingsamongst individuals is exponential.With no broken labour patterns andworking full-time, Ella ($1,865,359.94)will have made eighty-one percent ofKean’s superannuation savings($2,295,431.90.

With temporarily leaving theworkforce for six years and returningto full time work, Millie($1,535,643.07) will earn sixty-sixpercent of Kean’s ($2,295,431.90)overall superannuation earnings. Thisgap only intensifies with Nami($1,358,509.86) returning to theworkforce as part-time, she will earnfifty-nine percent of Kean’s($2,295,431.90) earnings. The mostsignificant gap is with Bella($973,176.68) who does not return tothe workforce, she will earn forty-twopercent of Kean’s ($2,295,431.90)lifetime superannuation earnings.

savings stand at, Kean $282,014.76,.Ella $262,945.24, Millie $187,301.62,$183,693.48, and Bella $164,430.60 Atthis rate Ella and Kean’s gap is notrelatively significant with Ella($262,945.24) at ninety-three percentof Kean’s ($282,014.76)superannuation savings. However, thisgap intensifies across the women whohave had broken work patterns andchange their employment contractafter childbirth. At forty-one, Milliehas returned to the workforce and hasaccumulated $187,301.62 insuperannuation, which is seventy-onepercent of Ella’s superannuationsavings ($262,945.24) and sixty-sixpercent of Kean’s ($282,014.76).


Graph three indicates individual’ssuperannuation savings if theywithdrew $10,000 at the age oftwenty-five. Graph three provides thefollowing lifetime superannuationsaving estimates, Kean $2,101,782.98,Ella $1,684,156.41, Millie$1,341,994.15, Nami $1,188,295.96,and Bella $779,527.76. Graph threeprovides insight into the effects ofutilising the ERS scheme at the age oftwenty-five and withdrawing $10,000.A $10,000 withdrawal has substantialeffects on an individual’s overallsuperannuation savings. According tograph three a $10,000 withdrawalequates to roughly $193,648.92 inlosses by the time individuals reachthe retirement age of sixty-five.However, graph three reflects theimpact of losing $193,648.92 across

Graph 3. Projections of Lifetime Superannuation Earnings with a $10,000 withdrawal, source: Excel..

individuals as some will incur a greaterpercentage loss. Kean will incur aneight percent loss of his originalsuperannuation savings($2,101,782.98), Ella ($1,684,156.41)will experience a ten percent in losses,Millie ($1,341,994.15) a twelvepercent loss, Nami ($1,188,295.96) afourteen percent loss, and finally Bella($779,527.76) will see a nineteenpercent loss. Graph three indicatesthat a $10,000 withdrawal will havevarying consequences on individualsdependent on their overallsuperannuation savings, as thesesavings compound overtime andindividuals who have a lower balancewill see greater financial losses to theirsuperannuation income.


Graph four provides estimations onthe effects of a $20,000 withdrawal atthe age of twenty-five across allindividuals. Graph four provides thefollowing projections of lifetimesuperannuation savings, Kean($1,908,134.06), Ella ($1,502,953.46),Millie ($1,148,345.23), Nami($971,212.02), and Bella($585,878.84). Graph four indicatesthe projected amount of losses a$20,000 withdrawal at twenty-five willhave on the individual’ssuperannuation savings at sixty-five.Graph four indicates that a $20,0000withdrawal made by young people willamount to an estimated $387,297.84in losses when they retire at sixty-five.Graph four reflects that this amount offinancial loss will have varying effectson individuals dependent on their

Graph 4. Projections of Lifetime Superannuation Earnings with a $20,000 withdrawal from the Early Access Scheme, source: Excel.

standing amount of superannuationsavings, as compound interest andlabour patterns can cushion theamount of percentage loss. Thepercentage loss relative to theindividual incomes are provided (referto graph two). Kean ($1,908,134.06)will incur a sixteen percent loss, Ella($1,502,953.46) will experience atwenty percent loss, Millie($1,148,345.23) will see a twenty-fivepercent loss, Nami ($971,212.02) willforego a twenty-eight percent loss,and finally Bella will experience($585,878.84) a thirty-nine percentfinancial loss. The results collectedfrom graph four indicate that a$20,000 withdrawal will have asubstantial effect on an individual’sretirement savings. This financial lossis experienced on varying scales across

the individuals due to gender anddifferent work patterns. It can bedrawn that a limited time in theworkforce has severe ramifications onan individual’s retirement savings,with Bella experiencing the greatestamount of financial loss.

24

Findings


This chapter will synthesise and discuss the results collected from thisresearch report and discuss these findings in relation to pre-existingliterature and broader ideological debates.

1 The Early Release Scheme (ERS) has a substantial impact on youngindividual’s retirement savings

The first finding identified in this report is that the ERS has asubstantial impact on young people’s retirement savings. The effectsof the ERS on young people must be analysed in the context ofAustralia’s ageing fiscal policy and the discourse around young peopleand superannuation. Smith and Hetherington (2018) highlight thatAustralia’s retirement income system now places focus on individual’saccumulating a pool savings over their working life. Thus, individualswho reap the most benefits of the superannuation system areAustralians who have a long undisrupted pattern of labour, wheretheir superannuation has experienced continued growth since theystarted employment. The results in this report indicate thatwithdrawals using the ERS at the age of twenty-five have a substantialimpact as there is an accumulation of losses as withdrawals are longersubject to the multiplying benefits of compound interest. Therefore,young people who withdrew money will experience a greater amountof superannuation loss. As stated previously, McKeown (2020) statedthat around forty percent of applications were made by people underthe age of thirty. Therefore, young people have borne a considerablefinancial brunt during the covid-19 pandemic, with $10,000withdrawals at twenty-five being estimated to equate to about$193,648.92 in losses by the time they reach sixty-five (refer to graphthree).

It must be noted that multiple academic studies have indicated thatsuperannuation knowledge, behaviour, and attitudes among youngAustralians is poor (see Ali et al. 2015 and Anderson et al. 2000).Anderson et al. (2000) highlight that Australians between the age of 25– 34 years are generally disinterested in their superannuation account.This disinterest cannot be reduced to one explanation, but a strongargument is that retirement is not a top priority for young people dueto it being in the long-term future and issues of career and homeowning are prioritised. In the context of the ERS, it is the samedemographic that lacks basic understanding of superannuation thatmade up most applicants of the ERS. This correlation of demographicsraises question if young people were aware of the long-termconsequences of withdrawing their superannuation. Furthermore, theeligibility of the ERS should also be discussed in relation to the highamount of young people applying for the ERS. As this report found thatthe ERS comes with devastating long-term losses of $193,648.92 for$10,000 withdrawals (refer to graph three) and $387,297.84 for$20,000 withdrawals (refer to graph four), these substantial financiallosses bring to question the appropriateness of the ERS criteria forwithdrawal. The Liberal Government proposed the ERS was designedfor the purpose to be an emergency lifeline for those not eligible forJobSeeker and JobKeeper. However, the rate of applications amongstyoung people raise policy questions of whether this was an effectivemeasure to curb social spending, or if it is just delaying severeeconomic costs in retirement.

The substantial financial losses for young people accessing the ERS is akey finding in this report. It has been found that the ERS has had adisproportionate effect on young people. This finding must bediscussed in relation to Australia’s ageing fiscal policy and thediscourses around young people and superannuation. Ali et al. (2015)highlights that there needs to be more tailored information for youngpeople regarding basic information for superannuation. It can beargued there was a lack of information and protections for youngpeople in the implementation of the ERS which lead to a highernumber of applicants.


2Women are disproportionately affected by the ERS due to the genderwage gap

The second finding identified in this report is that women aredisproportionately affected by the ERS compared to men. The resultscollected in this report found that without any early withdrawal andidentical working patterns, a woman will earn eighty-one percent of aman’s superannuation savings (refer to graph two). This gap in losses isdirectly attributed to the gender wage gap which stands at 15.5percent (WEGA 2018) as other variables were not accounted forbetween the two individuals. This report found that even with theidentical working patterns of Kean and Ella if they withdraw $10,000,Kean will incur an eight percent loss of his original superannuationsavings ($2,101,782.98) whilst Ella ($1,684,156.41) will experience tenpercent in losses. This gap in financial loss increases with the amountwithdrawn, with $20,000 withdrawals leading to Kean ($1,908,134.06)incurring a sixteen percent loss whilst Ella ($1,502,953.46) willexperience a twenty percent loss (refer to graph four).

These significant income gaps between Kean and Ella align withprevious academic studies that discuss the superannuation gapbetween men and women (see Volpato 2018, Preston & Austen 2001).The findings in this report find that women are still at a significantdisadvantage when it comes to the accumulation of superannuation.However, the ERS contributes to the wicked problem of thesuperannuation gap as it exacerbates entrenched inequality regardingretirement savings of men and women. Our findings align with Smithand Hetherington (2018) who outline that because superannuationcontributions are mostly a direct function of income levels, the genderpay gap plays an integral role in widening the gap between men andwomen in retirement savings. Whilst Eastough and Millier (2004) arguethat the gender wage gap in Australia is one of the lowest in theOrganisation for Economic Cooperation and Development (OECD),literature just discussing the gender wage gap often fail to focus on thegender wage gap’s relationship with other factors of gender inequality.The findings in this report draw direct conclusions to the gender wagegap affecting women’s superannuation savings and thus, the ERSexacerbates this gap dependent on the amount withdrawn. Hence, ourfindings come to a similar conclusion of Smith and Hetherington (2018)who outline women’s retirement income has taken on the features ofa wicked problem, as there is a confluence of variables including thegender wage gap and the ERS which contribute to the superannuationgap widening.

3 The significance of ERS withdrawals is exacerbated by childresponsibilities and subsequent broken labour patterns of women

The final finding identified is that the ERS exacerbates thesuperannuation gap amongst women who have children andsubsequent broken labour patterns. The results collected in this reportfound that a $10,000 withdrawal using the ERS would equate to anestimated $193,648.92 in losses when the individuals reach theretirement age of sixty-five (refer to graph three). However, thisamount of loss has varying significance dependence on individual’srelationship with the labour market. It was found women havingchildren and low labour market involvement are integral factors inexacerbating the superannuation gap. The results collected found thatKean will incur an eight percent loss of his original superannuationsavings ($2,101,782.98), Ella ($1,684,156.41) will experience a tenpercent in losses, Millie ($1,341,994.15) a twelve percent loss, Nami($1,188,295.96) will see a fourteen percent loss, and finally Bella willsee a nineteen percent in losses (refer to graph three).


As shown, the women with lower labour market involvement see theirsuperannuation suffer more significantly from ERS withdrawals at theage of twenty-five. This gap increases exponentially with largerwithdrawals (as shown in graph four). According to the resultscollected in this report, a $20,000 superannuation withdrawal attwenty-five will equate to roughly $387,297.84 in superannuationlosses (refer to graph four). The percentage loss relative to theindividual incomes is Kean ($1,908,134.06) will incur a sixteen percentloss, Ella ($1,502,953.46) will experience a twenty percent loss, Millie($1,148,345.23) will see a twenty-five percent loss, Nami ($971,212.02)will forego a twenty-eight percent loss, and finally Bella will experience($585,878.84) a thirty-nine percent financial loss. These results furtherhighlight how women are disproportionately affected due totraditional gender roles which impacts women’s labour involvement.

These findings align with Preston and Austen (2001) who highlight thatoccupational superannuation benefits those with a strong attachmentto the workforce, and thus, has adverse consequences for women.These gaps in superannuation are compounded over time and the ERSexacerbates its gap, especially when savings are taken out at twenty-five and then women leave the workforce. This break in employmentmeans women have less opportunity to contribute to theirsuperannuation accounts. The results in this report providedsuperannuation savings estimations for four different women whoreflected various working patterns. Preston and Austen (2001)highlight that women continue to be constrained by their traditionalroles within the home, caring responsibilities, financial dependence onpartners, broken work patterns, and part-time/casual work. The resultsin this report reflected these variables in its projections, which indicatehow traditional gender roles directly impact the severity of the ERS onwomen. Smith and Hetherington (2018) highlight that women usuallytake more time off work than men and are also more likely to return topart-time than full time work. Furthermore, the point in a women’s lifewhere she leaves the workforce for maternity leave (usually latetwenties) can cause a gap in super balances (Smith and Hetherington2018). Therefore, young women who withdrew a considerable amountof their superannuation at twenty-five (a majority of ERS applicants)will see their superannuation gap increase exponentially over their lifecourse.


This report sought to investigate the financial impacts of the ERS onyoung people’s retirement savings and the superannuation gap.Through employing a feminist critique and the methodology of socialscience microsimulation, this report came to three conclusions. Firstly,the ERS will have a significant impact on young people’s retirementsavings due to the financial losses in compound interest over time.Secondly, the significance of these losses is disproportionate if you area woman due to the gender wage gap. Finally, the rate of these lossesincreases dramatically if you have broken labour patterns or have lowinvolvement in the workforce. Unfortunately, due to traditionalgender roles it is usually women who deal with these losses due tocaring and unpaid domestic responsibilities. Due to these findings, thisreport had found that the ERS exacerbates entrenched genderinequalities in Australia by widening the superannuation gap betweenmen and women. However, this report has its limitations and requiresfurther expansion. The methodology and the subsequent resultssection of this report were formed with a set of assumptions that limitits accuracy.

This report lacked the time and resources to create more effectivemodels to project accurate future earnings and thus all projections areset from 2018 ABS statistics. Furthermore, this report lacks theresources to project future superfund performance rates and a basicrate was set. Thus, future market failures and booms cannot beaccounted for. Whilst there are limitations to the accuracy of thisstudy, its conclusions are still key for future academic discussion onthe superannuation gap and the impacts of covid-19 on women. Thisreport finds that policies such as the ERS do not acknowledgeentrenched gender inequalities and will play an integral role inwidening the superannuation gap for current young Australian womenwhen they reach retirement. Future recommendations will beprovided below which attempt to take a more intersectional approachat superannuation policies and expand future academic research tocontinue discussion.

1Policy Recommendations

Conclusion

Recommendations

Implementing Gender Mainstreaming Tools to Prevent GenderInequalities Being Exacerbated During Crisis

The findings in this report have concluded that the ERSdisproportionately disadvantaged women. It has been found that theERS was a gender-blind policy provision during the covid-19 pandemic,that did not acknowledge and account for embedded genderinequalities. This report recommends that future provisions rolled outduring crisis should take a gender sensitive approach. The policyapproach of gender mainstreaming is that it seeks to institutionalisegender equality by embedding gender-sensitive practices and normsinto the policy process (Daly 2005). This report identifies that thegender-blind approach of the ERS allowed for gender inequalities to beexacerbated during the crisis. The use of tools such as gender impactassessments would have helped prevent the implementation of theERS during covid-19. Future policies should look to incorporate agender mainstreaming framework which will help improve theeffectivity of mainline policies by making gender visible in policydevelopment (Walby 2005).


2 An Increase of Tailored Information for Young People RegardingSuperannuation

This report found that the majority of ERS applicants were youngpeople aged between twenty-five to thirty-four years old. Inconjunction, it was also found this demographic has poorsuperannuation knowledge. This report recommends there should beincreased government attention to providing tailored superannuationinformation for young people to ensure they are better equipped tomake financial decisions regarding their superannuation. The ERSlenient eligibility and lack of transparent information on itsramifications, have meant that young people have borne a significantfinancial brunt of covid-19 that will have long-term consequences.

1Academic Recommendations

Greater Academic Focus on the Intersectional Impacts of Covid-19Social Provisions

Whilst the total magnitude of the covid-19 pandemic is yet to berealised, current literature critiquing social provisions implemented byState and Federal government(s) have lacked an intersectionalapproach. Intersectional theory is a crucial framework in ensuringpolicy analysis does not conflate or ignore intragroup differences(Crenshaw 1991). When analysing the social provisions implementedby the Federal and State government(s), it is crucial to analyse whichgroups benefit and which groups were ignored and/or harmed inpolicy. Future academic literature on covid-19 should conduct rigorousintersectional critique on the government’s social provisions to reflecthow minority groups can be ignored or even harmed through blindpolicies like the ERS.

2 Greater Academic Interrogation into the Gendered Inequalities thathave Led to the Superannuation Gap and Future Solutions

Current academic inquiry in superannuation often lacks a nuanceddiscussion in critiquing the various gender inequalities that contributeto the superannuation gap. Whilst Smith and Hetherington’s (2018)feminist analysis of superannuation articulate how superannuation hastaken on the features of a wicked social problem, further academicanalysis is required. Furthermore, there is limited academic literaturethat offer future solutions to narrow the superannuation gap. Futureresearch should look to providing solutions so government pressurecan be applied to change the way in which superannuation operates toensure the system is equitable.

30

Bibliography

Algorithms are generally trainedto record and memorise pastdecisions and learn fromthem20. This implies that thealgorithms memorise the patternsof previous decisionsand can replicate the patterns ofthese decisions. Without concretemitigation plans, algorithms adopthuman decision patterns andreplicate them as a predictor ofsuccess metrics. Here,humans may rely on internalizedgender bias to make hiringdecisions or hiring panels may failto include sufficient femalerepresentation, leading to genderbias codified in thealgorithms. Ultimately, algorithmstrained with human interferencecan replicate human bias.

30

Ali, P, Anderson, M, Clark, M, Ramsay, I & Shekhar, C 2015, 'No thought for tomorrow: young Australian adults' knowledge,behaviour, and attitudes about superannuation', Law and Financial Markets Review, vol. 9, no. 2, pp. 90-105.

Anderson, M, Clark, M, Ramsay, I & Shekar, C 2000, 'Super Behaviour: A Note on Young Australian Adults' Engagement WithTheir Superannuation Accounts', Australasia Accounting Business & Finance Journal, vol. 10, no. 4, pp. 58-70.

Andrew, J, Baker, L, Guthrie, J & Martin-Sardesai, A 2020, 'Australia's COVID-19 public budgeting response: the straitjacket ofneoliberalism', Journal of Public Budgeting, Accounting & Financial Management, doi: 10.1108/JPBAFM-07-2020-0096, pp.1-12.

APRA 2020, ‘COVID-19 Early Release Scheme – Issue 23’, APRA, 6th October, viewed 10th October, available at:https://www.apra.gov.au/covid-19-early-release-scheme-issue-23.

Australian Bureau of Statistics 2002, ‘Australian Social Trends’, ABS, cat. 4102.0, Canberra, Australia.

Australian Bureau of Statistics 2018, ‘Employee Earnings and Hours, Australia’, ABS, cat. 6306.0, Canberra, Australia.

Australian Government 2020, Early Access to superannuation, Canberra, Australian Government.

Beneria, L 1979, 'Reproduction, production, and the sexual division of labour', Cambridge Journal of Economics, vol. 3, no. 3, pp.203-225.

Benschop, Y, Halsema, L & Schreurs, P 2001, 'The division of labour and inequalities between the sexes: an ideological dilemma',Gender, Work, and Organisation, vol. 8, no. 1, pp. 1-18.

Bergmann, B.R 1990, 'Feminism and Economics', Women's Studies Quarterly, vol. 18, no. 3-4, pp. 68-74.

Breen, R & Cooker, L.P 2005, 'The Persistence of the Gendered Division of Domestic Labour', European Sociological Review, vol.21, no. 1, pp. 43-57.

Chomik, R & Piggott, J 2012, 'Pensions, Ageing and Retirement in Australia: Long-Term Projections and Policies', The AustralianEconomic Review, vol. 45, no. 3, pp. 350-361.

Connell, R.W 1985, 'Theorising Gender', Sociology, vol. 19, no. 2, pp. 260-272.

Crenshaw, K 1991, ‘Mapping the Margins: Intersectionality, Identity Politics, and Violence against Women of Colour’, StanfordLaw Review, vol. 43, no. 6, pp. 1241-1299.

Daly, M 2005, 'Gender Mainstreaming in Theory and Practice', International Studies in Gender, State, and Society, vol. 12, no. 3,pp. 433-450.

Department of Health 2020, ‘Coronavirus (COVID-19) current situation and case numbers’, Australian Government, 23rd October,viewed 24th October 2020, available at: https://www.health.gov.au/news/health-alerts/novel-coronavirus-2019-ncov-health-alert/coronavirus-covid-19-current-situation-and-case-numbers#total-cases-recoveries-deaths-and-new-cases-in-the-last-24-hours.

Drury, B 2020, ‘Super fund performance over 28 financial years (to June 2020)’, SuperGuide, July 17th, viewed 25th September2020, available at: https://www.superguide.com.au/comparing-super-funds/super-funds-returns-financial-year.

Eastough, K & Miller, P.W 2004, ‘The Gender Wage Gap in Paid-and-Self-Employment in Australia’, Australian Economic Papers,vol. 43, no. 3, pp. 257-276.

Edey, M & Simon, J 1998, 'Australia;s Retirement Income System', in Feldstein, M (ed), Privatising Social Security, 1st edn,University of Chicago Press, United States, pp. 63-97.

Hodgson, H 2020, 'Superannuation and COVID-19: What does early access mean for women?', Power to Persuade, 20th April2020, accessed 12th October 2020, available at:https://espace.curtin.edu.au/bitstream/handle/20.500.11937/79615/79697.pdf?sequence=2.

Hunt, G 2020, ‘First confirmed case of novel coronavirus in Australia’, Ministers Department of Health, 25th January 2020,viewed: 12th October 2020, available at: https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/first-confirmed-case-of-novel-coronavirus-in-australia.


https://www.apra.gov.au/covid-19-early-release-scheme-issue-23

https://www.health.gov.au/news/health-alerts/novel-coronavirus-2019-ncov-health-alert/coronavirus-covid-19-current-situation-and-case-numbers

https://www.superguide.com.au/comparing-super-funds/super-funds-returns-financial-year

https://espace.curtin.edu.au/bitstream/handle/20.500.11937/79615/79697.pdf?sequence=2

https://www.health.gov.au/ministers/the-hon-greg-hunt-mp/media/first-confirmed-case-of-novel-coronavirus-in-australia

31

Algorithms are generally trainedto record and memorise pastdecisions and learn fromthem20. This implies that thealgorithms memorise the patternsof previous decisionsand can replicate the patterns ofthese decisions. Without concretemitigation plans, algorithms adopthuman decision patterns andreplicate them as a predictor ofsuccess metrics. Here,humans may rely on internalizedgender bias to make hiringdecisions or hiring panels may failto include sufficient femalerepresentation, leading to genderbias codified in thealgorithms. Ultimately, algorithmstrained with human interferencecan replicate human bias.

31

Jefferson, T & Preston, A 2005, 'Australia's "Other" Gender Wage Gap: Baby Boomers and Compulsory SuperannuationAccounts', Feminist Economics, vol. 11, no. 2, pp. 79-101.

Lee, A 2020, ‘Wuhan novel coronavirus (COVID-19): Why global control is challenging?’, Public Health, vol. 1, no. 179, pp. 1-1.

Martin, B & Xiang, N 2015, 'The Australian Retirement Income System: Structure, Effects and Future', Work, Aging andRetirement, vol. 1, no. 2, pp. 13-143.

McKowen, W 2020, ‘Kicking Australia’s Superannuation Problem into the Future’, Pursuit, June 30, viewed 22nd September 2020,available at: https://pursuit.unimelb.edu.au/articles/kicking-australia-s-superannuation-problem-into-the-future.

Mies, M 1981, 'The Social Origins of the Sexual Division of Labour', Institute of Social Studies, vol. 1, no. 85, pp. 1-49.

Moss, P 2006, ‘Structures, Understandings and Discourses: possibilities for re-envisioning the early childhood worker’,Contemporary Issues in Early Childhood, vol. 7, no. 1, pp. 30-42.

Nelson, J.A 1996, Feminism, Objectivity and Economics, 1st edn, Routledge, London.

Norman, J 2020, 'Early Access superannuation scheme estimated to hit $42 billion in coronavirus support', ABC News, 30th July2020, accessed: 11th October 2020, available at: https://www.abc.net.au/news/2020-07-30/early-access-superannuation-estimate-double-coronavirus-payment/12505984.

Parliament of Australia 2020, ‘Coronavirus Economic Response Package Omnibus Bill 2020’, Australian Government, 23rd March,viewed 20th October 2020, available at:https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6521/.

Preston, A & Austen, S 2001, ‘Women, Superannuation & The SGC’, Discussion Paper 14: Women’s Economic Policy Analysis Unit,Curtin University of Technology, Perth.

Robeyns, I 2000, 'Is there a feminist economic methodology?', Workshop on Realism and Economics, University of Cambridge,United Kingdom.

Schiffman, D.A 2004, 'Mainstream economics, heterodoxy and academic exclusion: a review essay', European Journal of PoliticalEconomy, vol. 20, no. 1, pp. 1079-1095.

Smith, W & Hetherington, D 2018, 'Not so super, for women: Superannuation and women's retirement outcomes', Precedent,vol. 1, no. 144, pp. 9-13.

Volpato, K 2018, 'Women and retirement savings: Why do women have less than half?', Equity, vol. 32, no. 2, pp. 4-6.

Walby, S 2005, ‘Gender Mainstreaming: Productive Tensions in Theory and Practice’, International Studies in Gender, State, andSociety, vol. 12, no. 3, pp. 321-343.

WGEA 2018, ‘The Gender Pay Gap’, The Australian Government, viewed 23rd September 2020, available at:https://www.wgea.gov.au/topics/the-gender-pay-gap#:~:text=The%20full%2Dtime%20base%20salary,and%20non%2Dmanagement%20occupational%20categories.

Woolley, F.R 1993, 'The feminist challenge to neoclassical economics', Cambridge Journal of Economics, vol. 14, no. 4, pp. 485-500.

World Health Organisation 2020, ‘WHO Coronavirus Disease (COVID-19) Dashboard’, World Health Organisation, 25th October,viewed 26th October 2020, available at: https://covid19.who.int/?gclid=Cj0KCQjwxNT8BRD9ARIsAJ8S5xY-dVXrPdsKn-j7_EYkWi802a8oAGuG0jvawelvHYNv5VL8dTxgfIYaAtx0EALw_wcB.

Worthington, A.C 2008, 'Knowledge and Perceptions of Superannuation in Australia', Journal of Consumer Policy, vol. 31, no. 1,pp. 349-368.

Yates, J & Bradbury, B 2010, ‘Home ownership as a (crumbling) fourth pillar of social insurance in Australia’, Journal of Housingand the Built Environment, vol. 25, no. 2, pp. 193-211.


https://pursuit.unimelb.edu.au/articles/kicking-australia-s-superannuation-problem-into-the-future

https://www.abc.net.au/news/2020-07-30/early-access-superannuation-estimate-double-coronavirus-payment/12505984

https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6521/

https://www.wgea.gov.au/topics/the-gender-pay-gap

https://covid19.who.int/?gclid=Cj0KCQjwxNT8BRD9ARIsAJ8S5xY-dVXrPdsKn-j7_EYkWi802a8oAGuG0jvawelvHYNv5VL8dTxgfIYaAtx0EALw_wcB

early access —late consequences? - university of melbourne

Documents