Reward for working pensioners
Pensioners will be able to earn more without losing their pension in an attempt by the Federal Government to keep them in the workforce for longer.
Fairfax newspapers are reporting that an incentive-based program that rewards pensioners for re-entering or staying longer at work will be included in next month’s budget.
From 1 July, Australians receiving an age pension will be able to earn up to $10,400 – an increase on the income-free threshold of $2,600 – in both investment and wage income and still receive the maximum rate. A pensioner who receives income solely through wages may earn up to $48,980 and receive a percentage of the pension.
The Government flagged its intentions to tempt the nation’s ageing population back into the workforce during the election, but a private Treasury briefing note obtained by Fairfax reveals the extent of Labor’s plans and costed funding.
A cost-of-living analysis shows the policy will mean a higher disposable income for pensioners who want to keep working on a casual or part-time basis without affecting their government-funded payments.
Treasurer Wayne Swan has warned that workforce participation will need to be boosted to cope with the demands of Australia’s growing economy in the long term. He identified the nation’s large elderly population as an untapped labour asset.
