Economic management — Question 14

QUESTION 14 (13 marks)

The data and information shown represent an economic issue in Australia.

Superannuation is a percentage payment from current income by an employee. The purpose is to save for a future income in retirement.

Policy option 1

Policy option 2

Women given incentive to top up

One-off taxation levy for low

personal superannuation accounts

superannuation balances

Five-year income tax discount to older

All Australians pay a one-off additional

women if they pay significantly more into

tax on their 2024 income to fix an

their superannuation fund each year ...

identified inequity ...

Superannuation is a percentage payment from current income by an employee. The purpose is to save for a future income in retirement.

tax on their 2024 income to fix an

Estimated Australians without

* The introduction of compulsory superannuation in 1992 incentivised more Australians to save for their retirement. The nature of compounding magnifies the effect of early contributions to superannuation.

* The introduction of compulsory superannuation in 1992 incentivised more Australians to save for their retirement. The nature of compounding magnifies the effect of early contributions to superannuation.

	1990		2020
	Women (%)	Men (%)	Women (%)	Men (%)
Full-time	30	70	45	70
Part-time	40	10	30	10
Casual	30	20	25	20

Analyse the economic issue indicated in the data and economic information provided. Which policy option should the government implement to improve equity in economic prosperity for all Australians?