Media Release: Summit pensioner income credit a good start

National Seniors Australia has welcomed the announcement of a $4,000 income credit by the federal government at the end of the Jobs and Skills Summit, describing it as an important first step in addressing the jobs and skills shortages in the workforce.

The $4,000 income credit is on top of the existing Work Bonus of $7,800. It is a short-term measure available for Age and Service Pensions from December until the 30 June 2023 (Disability Support Pension recipients will also be included). Once this is legislated, pensioners will be able to earn an additional $4,000 before their pension reduces.

However, Australia’s peak organisation for older Australians believes more should be done to simplify our complicated pension system.

National Seniors Chief Advocate Ian Henschke says one of the biggest disincentives for aged pensioners and veterans to get back into the workforce, is the onerous reporting of any income earned by aged pensioners to Centrelink and the fear of losing their pension if they get it wrong.

“We are very happy to see the Jobs and Skills Summit take seriously our campaign to let pensioners work as a means of addressing the jobs and skills shortage,” he said.

“However, this new ‘income credit’ still puts the onus on aged pensioners to report their income to Centrelink which is a major disincentive for pensioners to return to work.

“It’s akin to them being audited every fortnight,” Mr Henschke said.

“We are grateful that pensioners can earn more and hope pensioners will respond to this move. However, we will continue to work with the government, opposition and cross bench parties and MPs to further reform the pension system.”

Mr Henschke says the New Zealand system where pensioners can work as much as they want without losing their pension remains the benchmark.

“It speaks volumes that in New Zealand 25 per cent of people aged 65 and over are still engaged in work, while here in Australia it is just 15 per cent,” said Mr Henschke.