Bosses want retirees. Government should get out of the way

There is no shortage of older Australians returning to the workforce, or wanting to, and along the way topping up their bank accounts. 

The good news is many businesses are welcoming seniors back into the workforce, creating jobs and opportunities for older people who want to work. 

The bad news is that they’re being held back by legislation that limits the amount of work they can perform before losing some, or all, of their benefits. 

This calendar year has seen a relaxation of the Work Bonus rules, which increased the amount pensioners can earn—from $7,800 to $11,800—before their pensions are impacted. 

But this is a temporary arrangement that is not guaranteed beyond December.  

National Seniors Australia has been advocating on retirees’ behalf under its Let Pensioners Work campaign, and Chief Advocate Ian Henschke recently told the Nine network’s A Current Affair program he wants all earnings restrictions lifted. 

He said Australia should follow New Zealand, where there is no limit on the amount retirees can earn. As a result, the workforce participation rate is 5 per cent higher than in Australia. 

If Kiwi retirees earn above the threshold, they pay tax on that amount. 

“New Zealand’s got a simple system. You work, you pay income tax and they just get on with it,” Mr Henschke said. 

“The fact of the matter is, you’ve got to give people a chance to at least have most of the money that they earn, in their pocket.”

A Current Affair spoke to seniors who had taken on part-time jobs, including 78-year-old Margaret Anderson, who works a few shifts a week at a restaurant in Queenscliff, Victoria. 

She said the work gave her more than just extra spending money. 

“I love the people I’m working with. I love the people I meet. I’ll do this for as long as I can.” 

Her boss, Barry Iddles, said he deliberately set out to hire a multigenerational workforce, and he is actively recruiting more people of retirement age. 

“The banter between the younger members and the senior members is incredible,” he said. “The team spirit is amazing.” 

Mr Iddles said many of his older staff would like to work a few more shifts per week but doing so would affect their pensions. 

Mr Henschke said it was time for Australia to recognise that there is a job crisis in Australia, with more than 450,000 vacancies, “and we’ve got 4.5 million Australians over 65”. 

“We need workers in aged care, childcare, home care, disability care and agriculture and tourism and hospitality,” he said. 

“So, letting the pensioners work and earn a bit more is actually going to help. It will be a win for the industry, a win for the pensioner and a win for the economy.” 

For further reading and video: A Current Affair