Bianca Hartge-Hazelman

Australian women are well over a generation away from achieving financial equality with the latest Financy Women’s Index* showing that progress has slowed over the past financial year despite a record narrowing of the superannuation gender gap.

The Women’s Index rose 0.5 points to 123.9 points in the June quarter, from a revised 123.4 points in the March quarter of 2019.

While women’s economic progress has improved 5 points over the 2018-19 financial year, it’s less than the 7.5 point gain recorded in the 2017-18 financial year when the score rose to 118.9 points from 111.4 points.

“It’s disappointing to see that despite greater awareness around gender equality, progress slowed over the past financial year, reflecting the weakest start to a calendar year since 2017, when the Index was first launched,” said Financy Women’s Index founder Bianca Hartge-Hazelman.

Key results Financy Women’s Index June Quarter

• The Financy Women’s Index rose 0.5 points to 123.9 points in the June quarter, from a revised 123.4 points in the March quarter of 2019.
• A moderation in female full-time employment and little improvement in female board appointments affected the score.
• Record improvements in the superannuation gender gap helped progress.
• Australian women are 45 years from achieving economic equality.

Overall, when the annual pace of progress recorded by the Financy Women’s Index is compounded and compared to the revised (FWX) Progress Target of 172 points, it shows that on the basis of current trends, Australian women are 45 years from achieving economic equality.

The FWX Progress Target is an aspirational guide on economic equality and is calculated by benchmarking women against men from data collected in 2012,
which is the baseline for this Report.

“It is pleasing to see progress being made on the Financy Women’s Index in the June quarter, albeit slowly,” said Deloitte Partner Nicki Hutley.

“However, as the mother of three girls, the thought that genuine economic equality is well over a generation away is disheartening. I would like to see further efforts on the part of policy makers and organisations to see greater strides made more rapidly,” she said.

Unlike previous quarters, the biggest factors that held back women’s economic progress in the June period included a moderation in female full-time employment growth and a lack of action by Corporate Australia to improve the representation of women on the boards of the top 200 listed companies.

Women occupied 29.7% of ASX 200 board positions in June, which is exactly where it was in December 2018.

“The numbers don’t lie,” said OneVue Group CEO Connie Mckeage. “We have seen one of the slowest quarters of progress and we have to ask ourselves why, despite efforts across the board, is this happening?  More importantly, do we need to start doing something differently?” said Ms Mckeage.

The factors which supported women’s economic progress in the June quarter include improved workforce participation, a record narrowing of the superannuation gender gap, improved underemployment, a fresh low in the gender pay gap, and higher tertiary enrolments.

The number of women employed full-time in the Australian workforce held relatively steady at a seasonally adjusted 3.27 million in June, while the female underemployment rate fell by 0.8 percentage points to 10.3% in January, from 11.1% a year ago.

The latest superannuation balance data by gender from the Australian Bureau of Statistics (ABS) shows that in the 2017-18 financial year, the gender gap has narrowed to 28%, from 34% in the 2015-16 financial year.

“It’s great news that the super gender gap has fallen to its lowest point, but this is being driven largely by women’s increased workforce participation,” said AMP Financial Planning adviser Dianne Charman.

“The super gap widens significantly by 45 years of age because of time spent out of the workforce raising children, so women still need to have a plan for making extra contributions later in their working life,” said Ms Charman.

The Financy Women’s Index for the June quarter also shows a small decline in the number of hours per week that women spend on unpaid work. However, there has been little change in level of unpaid work undertaken by women over the past decade.

In 2017, the average woman in a coupled relationship performed a total of 59.5 hours per week in paid and unpaid work, which is 4% more than the 57.2 hours of the average man.

While the difference is small, when we calculate the percentage that is unpaid, we find that women spend 62.6% of their time doing unpaid work, while men
are doing 37.8% of unpaid work.

Gender stereotypes persist in tertiary education enrolments and we continue to see subject selection in course areas such as Information Technology being male dominated and Health being female dominated.

While more women are enrolling in tertiary studies than men, many face a gender pay gap once they enter the workforce. The average gender pay gap stands at $3,000 or 4.8% based on 2018 data.

“I’m delighted that we are moving in the right direction, with a 5-point financial year gain in the Financy Index’s metric on women’s economic progress,” said AFA Inspire National Chair Kate McCallum.

“I’m particularly delighted that women’s super balances are notching up.  However, I’m also seriously worried that it seems that women’s progress in one area is matched by backward steps in others, like the stalling of full time employment.

“It seems that when some people see improvements in one aspect of women’s equality, they extrapolate this to mean that women have equal opportunities in all areas. And then I’m worried because if they don’t believe that inequality persists, they don’t need to be concerned – or do anything – to bridge the gap.

“The good news is that we have metrics like the Financy Index to remind us that change is happening and to press for urgent action for the change we need,” said Ms McCallum.

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Kate McCallum

The Association of Financial Advisers (AFA) and TAL have announced Kate McCallum of Multiforte Financial Services as the winner of the 2014 AFA Female Excellence in Advice Award (the Award).

AFA CEO, Brad Fox, said Ms McCallum is passionate about the advice profession and the value of quality financial advice and is an outstanding role model for fellow female advisers.

“Kate was an exemplary candidate for the Award, and we are proud to have her as the winner for 2014,” he said. “The Award seeks to focus attention on financial advice as an excellent career pathway for women as well as to close the advice gap that exists between the willingness of Australian women to seek financial advice compared to that of men. Developing financial literacy with female clients and the confidence to make informed decisions that comes from that knowledge, is an important criteria for the Award.”

Mr Fox said the finalists, semi-finalists and nominees for the Award are all to be congratulated for their continued commitment to bringing great advice to more Australians. “These women will continue to help raise the profile of financial advisers and the great difference they make to the lives of their clients and their communities. The AFA, together with TAL, is delighted to be able to recognise them for this.”

Brett Clark, TAL Deputy Group CEO, said Ms McCallum was an outstanding candidate and deserving Award winner.

“We are proud to encourage and inspire women in the industry to be the best they can be,” he said. “All of the Award candidates are making meaningful contributions to their profession and their passion and dedication is profoundly impacting their communities and their clients. Kate typifies the best qualities of the advice community and her support and leadership for both her clients and her peers demonstrate how much she puts back into the profession.”

Commenting on her involvement in the Award process, Ms McCallum said, “The Award for me celebrates remarkable advice – the type of advice that is absolutely about the client and ultimately changes their life. It also offers the chance to tell the story of the ‘good guys and gals’ in advice.

“I’ve found the experience energising and also challenging. Challenging because you have to put yourself out there. It’s led me to reflect on what I have achieved and the areas where I am still striving. I’m very aware that excellence is a journey.”
The other finalists were:

• Adrienne Rush, Bendigo Financial Planning
• Dominique Bergel-Grant, Leapfrog Financial
• Sarah Riegelhuth, Wealth Enhancers

Ms McCallum will receive a full scholarship from Macquarie Graduate School of Management (MGSM) (valued at $12,000) to complete either a Postgraduate Certificate in Management or an Executive Education Leadership Development Program.

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Brett Clark

The Association of Financial Advisers (AFA) and TAL have yesterday announced the finalists in the 2014 AFA Female Excellence in Advice Award (the Award).

The Award, which is offered annually, recognises female financial advisers who are making a significant contribution to their profession, their community and particularly to female clients.

AFA CEO, Brad Fox, said the Award is an important step in the continuous recognition of the achievements of women in financial advice.

“Showcasing the talents of female financial advisers is particularly important in the mission to increase the number of individuals, particularly women, who seek advice to gain appropriate superannuation savings, insurance and overall financial well-being,” he said.

“But it’s more than that. The Award is a catalyst to attract more women to become financial advisers and to bring their talents, including empathy and understanding, to the advice market place. We are incredibly proud of our finalists and all that they have achieved to this stage of their careers.”

TAL Life CEO Brett Clark said the job of shortlisting the final group proved to be difficult for the judges because of the very high standards of all of the semi-finalists.

“The finalists are all exceptional candidates and congratulations to each of them for making the final cut in what has been a highly competitive year for the Award. This year all of the semi-finalists attended a special two-day master class on leadership and development which they highly valued as part of the award program. All of the finalists are outstanding advisers and leaders in their own right who are delivering tremendous value for their clients and for the advice profession as a whole.”

The finalists for the 2014 Award are:

• Adrienne Rush, Bendigo Financial Planning
• Dominique Bergel-Grant, Leapfrog Financial
• Kate McCallum, Multiforte Financial Services
• Sarah Riegelhuth, Wealth Enhancers

The AFA Female Excellence in Advice Award is a joint initiative of the AFA and TAL with support from the Macquarie Graduate School of Management (MGSM). The winner of the 2014 Award will be announced at the AFA National Adviser Conference in Cairns on Tuesday 14 October 2014 and receive a full MGSM scholarship (valued at $12,000) to complete either a Postgraduate Certificate in Management or an Executive Education Leadership Development Program.

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