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2014
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
Sex Discrimination Amendment (Boosting Superannuation for Women) Bill 2014
EXPLANATORY MEMORANDUM
and
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Circulated by authority of
Adam Bandt
Sex Discrimination Amendment (Boosting Superannuation for Women) Bill 2014
OUTLINE
The purpose of this bill is to allow employers to make higher superannuation contributions
for women employees without breaching discrimination law or having to apply for an
exemption.
Section 14 of the Sex Discrimination Act 1984 prohibits employers from discriminating
against an employee on the ground of the employee's sex. Women currently retire with far
less superannuation than men. Reasons for this include lower average incomes, time out
of paid work to provide care and the prevalence of women in casual and part-time
employment. According to the ABS, in 2011-12 the average superannuation account
balances were $82,615 for men and $44,866 for women. As women have a longer life
expectancy than men, on average three to four years, they require a higher
superannuation balance than men at retirement.
By inserting a new section into the Act, this bill will allow employers to contribute to
addressing the financial gender imbalance by enabling them to make higher
superannuation contributions for women employees without having to seek an exemption
under section 44 of the Act.
FINANCIAL IMPACT
The bill would have no direct financial impact.
NOTES ON CLAUSES
Clause 1 - Short title
This clause provides for the short title of the bill.
Clause 2 - Commencement
The bill would commence on the day on which it receives the royal assent.
Clause 3 - Schedule
This clause provides for the effect of schedule 1, which is to make amendments to the Sex
Discrimination Act 1984.
Schedule 1 - Amendments of the Sex Discrimination Act 1984
Items 1 and 2 will be additions to section 14 of the Sex Discrimination Act 1984 and
provide for the application of the proposed new section 41C.
Proposed new section 41C
This section confirms that discrimination by an employer against a female employee is not
unlawful if the discrimination is on the grounds of the employee's sex and involves the
employer making an employer superannuation contribution that is more than otherwise
required by law.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Sex Discrimination Amendment (Boosting Superannuation for Women) Bill 2014
This bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the bill
The purpose of this bill is to allow employers to make higher superannuation contributions
for women employees without breaching discrimination law or having to apply for an
exemption.
Section 14 of the Sex Discrimination Act 1984 prohibits employers from discriminating
against an employee on the ground of the employee's sex. Women currently retire with far
less superannuation than men. Reasons for this include lower average incomes, time out
of paid work to provide care and the prevalence of women in casual and part-time
employment. According to the ABS, in 2011-12 the average superannuation account
balances were $82,615 for men and $44,866 for women. As women have a longer life
expectancy than men, on average three to four years, they require a higher
superannuation balance than men at retirement.
By inserting a new section into the Act, this bill will allow employers to contribute to
addressing the financial gender imbalance by enabling them to make higher
superannuation contributions for women employees without having to seek an exemption
under section 44 of the Act.
Human rights implications
The bill enhances gender equality and gives effect to the United Nations Convention on
the Elimination of All Forms of Discrimination against Women.
In particular, Article 11(d): The right to equal remuneration, including benefits, and to equal
treatment in respect of work of equal value, as well as equality of treatment in the
evaluation of the quality of work.
Conclusion
This bill is compatible with human rights because it advances the financial equality of
women.
Adam Bandt