Tax Data Explains Gender Pay Gap

November 17, 2017 Taxation in Australia

pay gap australiaCANBERRA – The pay gap in Australia has been explained using tax data from Australia.

New research published in the book Tax, Social Policy and Gender: Rethinking Equality and Efficiency has used Australian tax data to quantify the income inequality between men and women.

The results of the research showed that women have more interrupted work pattern than men, primarily due to facing a higher burden of childcare than men.

Due to the interrupted work patterns, the positive effects of higher education for women, have a reduced impact on incomes compared to the impacts enjoyed by men.

Due to the reduced impact of education and the significant interruptions to working time, the net incomes of women during their working lives is lower than for men.

Further, as the Australian superannuation system is based on a taxpayer’s lifetime income, the reduced earnings are carried over into retirement.

The research also indicated that in order to help reverse the income gaps, the country has to look into improving the access to high-quality of early childhood care, as this factor has been shown internationally to be a major contributor to women’s return to the workforce.

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