ALI MOORE, HOST: How do we get to economic equality for women? That has been the question for a government taskforce. In fact, I would say for many taskforces over recent decades, but that particular taskforce I'm referring to has just released a 10-year plan aimed at reducing the gap. Katy Gallagher is the Minister for Finance, Women and the Public Service. Katy Gallagher, welcome to Drive.
SENATOR THE HON KATY GALLAGHER, MINISTER FOR WOMEN: Thanks for having me on, Ali.
MOORE: This is a 10-year plan with seven major recommendations, and we'll get to some of them in a minute, but your response to the final report overall?
GALLAGHER: Well, we welcome the report. And it's a really important report. It's not just about you know, I don't want it to be seen as anything other than a significant report to help shape our economic policy into the future. And it paints a pretty sad picture, I think in some ways, about where we are in terms of gender equality in the economy, but also a lot of recommendations, as you say, about how to start shifting the dial to make sure we get a more equal economy that sort of where everyone can participate to the point that they want to.
MOORE: So, let's go to some of those recommendations and a key one is to pay superannuation on paid parental leave, which would be an absolute game changer, wouldn't it? And you have said in the past -- both yourself and the Prime Minister -- that when there's room in the Budget, you do want to see that. But surely if you wait for room to appear in the Budget, it simply won't happen?
GALLAGHER: Well, I think part of my job is to find room for a whole range of investments. I know this is one of the ones that is often raised as a critically important one because we know women retire with less superannuation than men. But it's also I think, symbolic about how we vet value. That time out of work when we're caring for children or others, which, you know, particularly super on PPL covers, on paid parental leave. So this is absolutely something the government is committed to doing. Part of my job with my other hat on, Minister for Finance, is to find room. And it's not -- I don't see it necessarily as a cost to the Budget, because it drives other economic outcomes. But this is yeah, this is very much on our desk, as we, you know, put together budgets in the future, that's for sure.
MOORE: Do you think though that it might be something you can find room for next year? I mean, it's something that's been talked about for a long time and as I said, and you said, committed to when there's room but as you said, it's not really going to be a cost?
GALLAGHER: Yeah, so, well, I can't sort of get in ahead of decisions that the ERC may or may not make, but --
MOORE: The Expenditure Review Committee?
GALLAGHER: -- That's right. We've been methodically working through I think, a range of priorities in this space. So, we've made improvements to paid parental leave so that it's expanded to 26 weeks. We've increased parenting payment single, we know that a lot of the vast majority of single parents are women. We're doing changes around gender pay gap recording. So, I think you've seen the position that Government's taken in its first two budgets about how we are trying to shift the dial to improve economic outcomes for women and certainly super on PPL is front and center but there are a whole range of other areas. I think that we have to focus on too, you know they're covered in this report, whether it be around unpaid care, work about better sharing of those responsibilities across the economy, about opportunities for work. And things like segregated labor markets that we have in Australia, and also how do we have the best outcomes when it comes to our education levels for women in the world and then as that translates into a career we go we fall much further down the line. So, there's a whole range of issues which this taskforce report has looked at and provided some guidance for us going forward.
MOORE: So, was any of the findings surprising to you?
GALLAGHER: Well, I guess I'm pretty immersed in this space. But I think when you put it all in one document, you know, because I think quite often people can say don't we live in an equal, you know, country where men and women have the same, you know, outcomes? And I guess, yeah, when you look at it in that term, I think if you haven't engaged in it from a policy point of view, I think some of the statistics in in the report, you know, are pretty confronting about you know, how much women earn, how much you know, we tend to be part-time workers, we make up 70 per cent of the part time workforce. Over half of the underemployed are women. We know that a 25-year-old woman who may have one child can expect to earn $2 million less over their lifetime than a 25-year-old man who becomes a father. So, there's no doubt we have some structural, serious issues across the economy that many of them aren't working for women and we have to look at how we shift the dial. So, I think in that sense, putting it all in a report like this, it is pretty confronting, but then it's over to us to look at how we can make the changes, both in the public sector and I think across the private economy, to make sure we're giving women a fair opportunity and a fair crack at those opportunities.
MOORE: So, what's the commitment from the Government in response to this report, which I should say also sort of built on last year's Jobs and Skills Summit?
GALLAGHER: That's right. So, it was one of those key -- we committed to this in the election, but it was certainly raised in the Jobs and Skills Summit, well, that we will use this as a very much a guiding document as we put together our decisions and our policy priorities. That's the commitment but I think you can say, going back to earlier in the interview, we have in two budgets, I think, made substantial investments in changes to make sure we are shifting the dial we've got definitely more work to do and this report provides a good roadmap for those decisions to be taken and puts us on notice that there's an expectation, quite rightly, from women around Australia that they'd like a better deal when it comes to their economic opportunities.
MOORE: You're listening to the Minister for Finance, Women and the Public Service, Katy Gallagher, and we're talking about the recommendations of this review of economic equality for women and how we get there. One of the recommendations, Minister, was one that I was not familiar with, but I guess it seemed to make enormous sense. And that was pausing indexation on HECS debts while women are out of the workforce. Is that something under consideration?
GALLAGHER: Well, that has been raised, I think, certainly by this taskforce, and it's come up in other forums as well. You know, I think there are big policy questions. We have to look out for that because there's a whole range of I think, well, a whole range of things you have to consider eyes open about pausing indexation for one group in one set of circumstances in relation to alone. But yeah, it's a recommendation that we will consider and respond to in good time.
MOORE: Just another issue, China -- of course -- announcing it's reviewing tariffs on Australian wine. How confident are you that that review will lead to tariff removal, as it did with the review on barley tariffs? And is it possible do you think that the five-month process that's now begun might be expedited?
GALLAGHER: Yeah, so look we're very hopeful in relation to this agreement that we've reached with China. I think, you know, this was the sanctions or the tariffs coming on, had such a substantial impact on our wine exports, particularly those companies that were dependent on China. But yeah, look, we were told there will be an expedited review but that would be expected to take about five months. But look, this is all about stabilising the relationship, making sure we can make progress where the opportunity is, obviously. But barley and now wine, this would be a really great outcome if we can get these tariffs removed, particularly for wine companies in Australia.
MOORE: And just one other issue, Minister, which we're going to be looking at a little later in the program, and that's new accounting standards that have been released by the corporate regulator. They start only applying to very big companies next year. And then they'll filter down to smaller ones, but they go to zero emission commitments, I suppose. And they go to scope three emissions, which, in essence mean that potentially these big companies are going to have to account for the emissions created by their employees commuting to work. How significant do you think they are as changes, and do you think Australian companies will comply?
GALLAGHER: Well, I think the main point is that climate disclosures are increasingly important for both investors and regulators. So, you know, we want to make sure that Australia maintains our reputation as an attractive destination for investment as the world transitions to a net zero economy. But we are -- we do understand it's a big change. So those changes will be phased in, in terms of the size of companies reporting and then what they have, what they report and how they report. But I think it's very clear that reporting scope three emissions, you know, is something that's required, but it will be phased in over time and no doubt there'll be plenty more discussion on this as those new standards come into being.
MOORE: Minister. We very much appreciate your time. Thank you.
GALLAGHER: Thanks very much, Ali.
MOORE: That is Katy Gallagher there the Minister for Finance, Women and the Public Service.