Super withdrawal proposal risks gender economic abuse: WIS

Yasmine Raso

Senior Journalist, Financial Newswire

17 October 2024

Industry organisation, Women in Super, has raised concerns over the proposal allowing withdrawal of superannuation to purchase a home, saying it increases the risks of economic abuse for single and divorced women.

Women in Super chief executive, Jo Kowalczyk, said the proposal shines a light on the inadequate funding for crisis support and affordable housing that is unable to support single and divorced women and may result in them falling into poverty or having to endure violence.

“The shortfall in funding for women who have separated, for affordable housing and crisis support, must be urgently addressed,” she said.

“Women should not be forced to rob from their economic security in retirement in order to leave a bad relationship.”

“The proposal would effectively take Australian women back to the situation before the introduction of a universal superannuation system, where super was the preserve of men and older single women were expected to survive on the Age Pension alone.”

Kowalczyk said the proposal could enable the economic abuse of even more women by former partners, pressuring them to withdraw from their retirement savings. According to Women in Super, 16 per cent of Australian women have been subject to economic abuse by an intimate partner.

“There is no way to protect women from the risk of economic abuse under this proposal,” Kowalczyk said.