Gender Gap in Earnings and Taxable Income in Australia: A Comparison

This report presents a research proposal focused on the gender gap in earnings and taxable income in Australia, comparing different states and territories. It aims to investigate the relationship between gender inequality and taxable income, examining various employment fields like accounting, fina...Read More

Running Head: GENDER GAP IN EARNINGS AND TAXABLE INCOME IN AUSTRALIA:
A COMPARISON IN DIFFERENT TERRITORIES AND STATES 1
Title: Gender gap and Taxation
Assignment Name: Gender gap in earnings and taxable income in Australia: A comparison in
different Territories and States
Student Name
Course Name and Number
Professor

GENDER GAP IN EARNINGS AND TAXABLE INCOME IN AUSTRALIA: A
COMPARISON IN DIFFERENT TERRITORIES AND STATES 2
Contents
Introduction......................................................................................................................................3
Review of Literature........................................................................................................................4
Aim and Objective...........................................................................................................................5
Research Questions/Problem...........................................................................................................6
Methodology....................................................................................................................................6
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

GENDER GAP IN EARNINGS AND TAXABLE INCOME IN AUSTRALIA: A
COMPARISON IN DIFFERENT TERRITORIES AND STATES 3
Introduction
Gender equality issue is the primary principles and objectives of the nation and is the
foundational issue for more reliable and sustainable policies. Dynamic policies are necessary to
explore better female capabilities or talent and to strengthen the participation of females in labor
market. Generalisations regarding the socioeconomic reality of males and females are difficult to
formulate since the gaps in gender and sexual discrimination have a correlation with others
parameters such as ethnicity, age, disabilities and any migration background (Matthias, Brys,
Heady, Johansson & Vartia, 2011). So, the aim is to formulate and achieve the policies of tax
which would be helpful in promoting gender equality to higher organizational level.For the
implementation of better tax policies, the higher level of legal framework regarding gender
equality has to be explored.There is a big implementation gap between actual legal framework
which is working and the framework which has to be formulated to ensure equality in taxable
income. To fill this gap, the targets must be defined to achieve gender equality, the gender
analyses implementation and compliance is necessary .
The introduction part of this research proposal gives a gender gap overview in socioeconomic
realities which greatly influence the allocative and distributional gender impact on tax policies.

GENDER GAP IN EARNINGS AND TAXABLE INCOME IN AUSTRALIA: A
COMPARISON IN DIFFERENT TERRITORIES AND STATES 4
Review of Literature
The policy on income and retirement savings in Australia has an old history under Income Tax
Assesment Act, 1915 (Cth) (ITAA, 1915). According to the previous act i.e Old -age pension Act,
1908(Cth), had a provision of pension for Australians with age over 65 years, but later on Income
Tax Assesment Act, 1915 provided tax deductibility in contributions by the employer.
In Australia, the impact of gender parameters on income tax and other policies did not attribute
in the conversations in the 20th century, a study was conducted in 2015 which revealed in details
that the gender pension difference favoring men in EU countries and this is an indicator of a
major problem (Craig, Mullan & Blaxland, 2010). According to this study, it was found that
average pension gap for 27 countries was 39% for the groups of 65 years of age or above. The
researchers proposed that the gender issues in budgets and various policies should be transparent
and visible in public debates so that the complexities could be identified and accordingly
alternative options would be formulated (Austen, Costa, Sharp & Elson, 2013).
The gender gap in economic activities in unpaid work paid employment, wealth, and income,
savings, and capabilities are the main domains which would take into consideration in order to
have understood the effect of government expenditures and taxation on both genders. This is
done by gender-responsive budgeting (GRB), which is designed to mainstream a gender issue in
budget and policies. It was also found that policies and programs which improve women
employment outcomes have great contribution in economic growth (Elson & Sharp, 2010).
In 1980, the scrutinizing of annual budgets for the impact on girls and women and gender
equality was done by the Australian federal & state governments and published a ‘Women
Budget Statement’(WBS). In 2014-15, after the abolishment of WBS, no alternative option has
emerged to describe gender impact analyses (GIA) of tax policies and their revenues. Gender

GENDER GAP IN EARNINGS AND TAXABLE INCOME IN AUSTRALIA: A
COMPARISON IN DIFFERENT TERRITORIES AND STATES 5
impact analyses (GIA), is very helpful for gender equity by contributing an understanding of the
effects of different policies on men and women (Sharp & Brromhill, 2002).
According to Himmelwiet the key principles of Gender impact analyses (GIA) are:
To assess and analyze the effects of policies on the paid as well as unpaid economies and the
incentive cost provided to either category should be properly justified.
To assess whether the policies enhance or decrease the gender inequality.
To assess the influence of policies on equality of gender between households and within them.
(Himmelwiet, 2002).
In Australia, considerable tax concessions are given to superannuation expenditures that
encourage and increases private savings. Studies revealed that tax expenditures on
superannuation disbursements have also bears negative impact on gender equality issues.
However, Australian female bears less than half superannuation balance as compared to male
and a high percentage of females (32.6%) have no superannuation while males have a low
percentage (26.1%) (Austen, Jefferson & Ong, 2014).
So, from the above literature survey and discussions about the gender inequality issues regarding
earning income and taxation the research proposal is formulated which would focus on the
gender gap in taxable income.
Aim and Objective
The aim of the research proposal is to find out the relationship between gender inequality and
taxable income in Australia and also to compare gender gap in different states and territories by
choosing different fields of employment like accounting, finance, media etc.
The main objectives of the present study are:
To study the gender gap in the earnings and income of both men and women.
To study the employment opportunities for both genders.
To study the gender inequality in the ability to work.

GENDER GAP IN EARNINGS AND TAXABLE INCOME IN AUSTRALIA: A
COMPARISON IN DIFFERENT TERRITORIES AND STATES 6
To study taxation income for both the genders in different industries.
To study the gender gap in taxable income in the various States of Australia.
Research Questions/Problem
Whether there is gender inequality?
What is the broad industries/field of employment to be studied for gender gap?
Which states/territories should be included in the studies?
What are the parameters to be compared in gender inequality in different states/territories?
Therefore, the present research proposal “Gender gap in earnings and taxable income in
Australia: A comparison in different Territories and States” is taken to investigate the
above-said problems.
Methodology
To perform the present research work, the quantitative methodology with survey methods would
be adopted as survey method is a method of finding the facts. The following methodology would
be adopted for the present work:
Area and time period for the study would be chosen. The states/territories which would be
identified in Australia for the studies are Victoria, New South Wales, Queensland, South
Australia, Tasmania and Western Australia.
The type of sample chosen would be chosen in terms of different industries in various
states/territories of Australia such as Information media and telecommunications, financial and
insurance services, education and training, retail trade The sample size will be calculated
statistically by using confidence level, the margin of error, population size by using probability
calculations. The sample size will also be calculated from the spreadsheets for sample size
calculations.

GENDER GAP IN EARNINGS AND TAXABLE INCOME IN AUSTRALIA: A
COMPARISON IN DIFFERENT TERRITORIES AND STATES 7
For the collection of data, the primary and secondary data collection method would be used. The
secondary data would be obtained from the various reports of on taxation, journal articles
regarding gender gap income and taxation, publications of government, and from public records
and statistics.
The primary data would be generated by using questionnaire method. An appropriate
questionnaire would be designed to collect information on gender inequality in taxation,
employment, and income etc. The questions would be focused on their current economic
conditions, their taxable income, amount of tax payable and their employment status . Despite
from the data collection by means of a questionnaire, the researcher would personally visit the
various multi-national companies, colleges to interact with accountancy students, C.A’s of
different firms to collect the feedback from respondents.
The data would include some key parameters such as taxable income number, taxable income
amount, gross taxable income number, gross taxable income amount, medicare levy, net tax,
salary or wages, allowances, Australian government allowances, Australian annuities and
superannuation, gross interest etc. The tabular form in which the data would be incorporated is
given below:

GENDER GAP IN EARNINGS AND TAXABLE INCOME IN AUSTRALIA: A
COMPARISON IN DIFFERENT TERRITORIES AND STATES 8
Comparison of genders in various Industries in different states of Australia
S.No Broad Industry Chosen State Gender No of Individuals
1 Information Media and
Telecommunications
Victoria Males
Females
New South
Wales
Males
Females
Queensland Males
Females
South
Australia
Males
Females
Tasmania Males
Females
Western
Australia
Males
Females
2 Financial and Insurance Services Victoria Males
Females
New South
Wales
Males
Females
Queensland Males
Females
South
Australia
Males
Females
Tasmania Males
Females

GENDER GAP IN EARNINGS AND TAXABLE INCOME IN AUSTRALIA: A
COMPARISON IN DIFFERENT TERRITORIES AND STATES 9
Western
Australia
Males
Females
3 Education and Training Victoria Males
Female
New South
Wales
Males
Females
Queensland Males
Females
South
Australia
Males
Females
Tasmania Males
Females
Western
Australia
Males
Females
4 Retail Trade Victoria Males
Females
New South
Wales
Males
Females
Queensland Males
Females
South
Australia
Males
Females
Tasmania Males
Females
Western
Australia
Males
Females

GENDER GAP IN EARNINGS AND TAXABLE INCOME IN AUSTRALIA: A
COMPARISON IN DIFFERENT TERRITORIES AND STATES 10
From the above tabular data, it would be analyzed the number of males and females taken as a
sample in various territories.
Conclusion
The outcome of the present research work would provide an overview of the gender gap and
taxation and the clear scenario of the magnitude of gender gap would be provided. The research
proposal would highlight the correlation among gender gap and taxation policies and would
summarize the current research aspects regarding gender gap. On the basis of data, a hypothesis
would be designed that gender equality may be in progress in terms of income and taxation or
may need more dynamic policies to completely eradicate the gender inequality in economics.
The report would provide a message for the policy-makers to make gender issues in taxation a
critical segment of their developmental policies. We hope that the information obtained from
above methodology and analysis in research proposal would serve as the basis for the
development towards gender equality in taxation.

GENDER GAP IN EARNINGS AND TAXABLE INCOME IN AUSTRALIA: A
COMPARISON IN DIFFERENT TERRITORIES AND STATES 11
References
A, C. (2015). Uncovering Women in Taxation: The Gender Impact of Detaxation, Tax
Expenditures, and Joint Tax/Benefit Units. Osgoode Hall Law Journal, 52(2), 427-459.
Austen, S., Costa, M., Sharp, R., & Elson, D. (2013). Expenditure incidence analysis: a gender-
responsive budgeting tool for educational expenditure in Timor-Leste?. Feminist
Economics, 19(4), 1-24.
Austen, S., Jefferson, T., & Ong, R. (2014). The gender gap in financial security: what we know
and don’t know about Australian households. Feminist Economics, 20(3), 25-52.
Craig, L., Mullan, K., & Blaxland, M. (2010). Parenthood, policy and work-family time in
Australia 1992–2006. Work, Employment And Society, 24(1), 27-45.
Elson, D., & Sharp, R. (2010). Gender-responsive budgeting and women’s poverty. S Chant
(Ed), Handbook On Gender And Poverty, Edward Elgar, 522.
Himmelwiet, S. (2002). Making visible the hidden economy: the case for gender-impact analysis
of economic policy. Feminist Economics, 8(1), 50-52.
Matthias, J., Brys, B., Heady, C., Johansson, A., & Vartia, L. (2011). Tax Policy for Economic
Recovery and Growth. The Economic Journal, 121(550), 59-80.
Sharp, R., & Brromhill, R. (2002). Budgeting for equality: the Australian experience. Feminist
Economics,, 8(1), 25-47.