A plan to allow young Australians to pay back university debts using their superannuation is bad news for women.
Western Australian Liberal Senator Chis Back wants the Federal Government to change the rules so that people in their 20s and 30s can use their super to pay off their student debts.
But for women in particular, that could spell disaster.
Australian university graduates owe tens of billions of dollars in student loan debts to the federal government.
A woman earning the median wage will take, on average, 12 years to repay her HECS debt. (The government doesn’t call it HECS anymore, but that’s what it’s generally known as, so lets go with it.)
For a man it will take an average of eight years.
A quarter of all women with a HECS debt (and you don’t have to graduate to accumulate one) will never repay it.
And while everyone will make at least some repayments, the government assumes around 16 per cent of all HECS borrowers will never repay the full amount.
Women pay back less, over a longer period of time than men do.
Why? Because they earn less than their male counterparts, and they take time out of the workforce to have children which puts them even further behind.