Did you know that the according to 2022 ABS data, the median income for a full-time male Registered Nurses is $1,802 compared to $1,631 for females?   It can be easy to assume that gender pay disparity is an issue limited to key industries or sectors but sadly nursing is far from immune to the structural and systemic challenges behind pay disparity.

This disparity not only impacts individual nurses, given 89% are women, but also ripples through households, affecting family wealth and generational prosperity. Addressing the 22.8% national gender pay gap across all sectors is vital for ensuring a healthier working life for everyone.

The persistent gender pay gap remains a major obstacle for women’s financial empowerment in Australia. Despite progress, the disparity persists, with the gender pay gap for ordinary full-time earnings hovering around 13% as of May 2023. When factoring in bonuses and overtime, the total remuneration gap widens to a staggering 21.7%. This means that for every dollar an average man earns, a woman earns approximately 78 cents. Over a 40-year career, this gap can accumulate to a substantial difference of up to $1 million.

Several factors contribute to this inequality, including conscious and unconscious discrimination, lower wages in female-dominated industries, women’s reluctance to apply for promotions or senior roles due to work-life balance concerns, and a higher propensity for women to work part-time.

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The Impact on Superannuation

The income gap between men and women has a direct impact on superannuation balances. Since employer contributions are calculated as a percentage of ordinary time earnings, lower incomes translate to lower super contributions. This disparity is further exacerbated when women take career breaks to raise families, resulting in periods with no super contributions.

To mitigate this impact, strategies such as making voluntary super contributions, salary sacrificing (where eligible), and exploring spousal contributions can be employed. Additionally, regular contributions, even if small, can have a significant compounding effect on superannuation balances over time.

Managing Taxes and Reducing Taxable Income

Effective tax management is so important for financial well-being. Key strategies include ensuring the correct amount of tax is being withheld from each pay cheque to avoid unexpected tax bills, exploring charitable donation tax deductions, and working with an accountant who understands the specific tax implications for your profession.

For eligible essential health workers, salary sacrificing can be a powerful tool to reduce taxable income. By using pre-tax income to pay for expenses like mortgage repayments, car loans, childcare fees, health insurance premiums, and voluntary super contributions, individuals can lower their overall tax burden.

Financial Independence

Maintaining financial independence is paramount, regardless of one’s relationship status. Engaging in candid, constructive dialogues with partners regarding financial matters, aspirations, and respective responsibilities is essential to prevent discord and ensure both individuals are on the same page.

By addressing the unique financial challenges women face and providing practical strategies, individuals can take control of their finances, achieve financial well-being, and pursue their goals with confidence.

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This article was sponsored by Health Professionals Bank