National, state and territory chambers of commerce urged federal Treasurer, Josh Frydenberg, to incentivise greater participation in the workforce by allowing age pension recipients to earn more without impacting their pension.
Currently age pensioners, under the Work Bonus threshold can only earn $480 a fortnight – or $12,840 a year – which is taxed at 50 per cent, before their pension payments are reduced. This is the equivalent of only one day a week at the minimum wage.
The united business chambers said businesses of every size, in every industry, in every corner of the country, are experiencing the worst skill and labour shortages in more than two decades, and with the omicron variant now in circulation, and delay in opening international borders again, the expected skilled international workforce is likely to be further delayed.
In a joint statement, the chambers said even when borders do reopen, the global war for talent means Australian businesses will be in fierce competition for skilled workers.
Data from the Australian Bureau of Statistics shows the number of additional hours worked by people over 65 has surged in the past two years from 685,000 hours to over 978,000 hours.
“There is an army of older workers, ready and willing to return to the workplace. However, skilled aged pension recipients have very little incentive to re-enter the workplace,” Andrew McKellar, chief executive, Australian Chamber of Commerce and Industry said.
“In raising the Work Bonus threshold, pensioners would be allowed the opportunity to earn more, while businesses who are struggling to find staff would have access to workers, filling thousands of job vacancies.
“As the national, state and territory chambers of commerce, our united demand reflects the fact that businesses right across the country are crying out for workers. This is a simple step the Federal Government must take to grow our workforce, boost our productivity and drive our economic recovery.”
