More affordable early childhood education and care could help boost the superannuation of Australian women, who are currently retiring with one third less super than men.

According to a new report from Industry Super Australia, increasing the child care subsidy for low- and middle-income families to 95 per cent and flattening taper rates, could see a woman on the median wage, if she moved from part-time to full-time work, retire with an extra $118,000.

Industry Super Australia says improving women’s workforce participation is the key to reducing the gender superannuation gap.

Making these changes to the federal government’s childcare subsidy, as modelled by Deloitte, would also help Australia’s economy grow by over $20 billion by 2050.

“ISA’s research shows that by increasing the CCS rate and flattening the taper rate, particularly for low-income women and families, the Federal Government would signficantly improve women’s workforce participation and, in turn, their retirement outcomes,” the report states.

“And once the full fiscal impacts are taken into account, the benefits from the boost to GDP, extra income and super tax revenue and reduced federal budget outlays in Age Pension and working-age social security payments would substantially reduce the net cost of increasing the CCS.

“If we do not act, women will continue to retire with less than men for more than four decades to come.

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