Regional women worst hit by Coalition superannuation cuts
WOMEN on low incomes living in regional areas will be the worst hit by a cut to Federal Government superannuation contributions, a submission from Industry Super Funds Australia shows.
The ISA, which represents about five million members of industry-based super funds, wrote the cut of $500 co-contributions would hit super savings by $53 billion by 2021.
Under the Abbott Government's repeal of the mining tax, Labor's promised $500 contribution for low-income workers on less then $37,000 will be removed.
In its submission, the ISA wrote the repeal of the contribution would increase super taxes for nearly one-third of Australians, reducing lifetime savings by up to $27,000 in today's dollars.
"The repeal of the ... will be particularly damaging to the retirement savings of women who constitute an estimated two-thirds of those eligible," the submission reads.
"ISA submits that the government and superannuation industry must explore every possible alternative option to ensure the maintenance of the contribution."
The effects are also likely to hit women in regional areas - where pay rates and job opportunities are lower - harder than their city counterparts.
The submission said the changes would likely hit four out of every 10 Australians living in rural or regional areas.