Increase to working limits for pensioners as ‘work bonus’ unveiled at jobs summit
The federal government has resolved to a one-off increase in how much pensioners will be allowed to work before it affects their fortnightly payments, as the two-day national jobs summit ends.
Pensioners will be able to earn an additional $4,000 this financial year without losing any of their pension, on top of the $480 fortnightly earning limit that currently applies.
In a bid to increase participation by older Australians, the Prime Minister said he would seek to change the law so that instead of pension payments being cancelled after 12 weeks if pensioners exceed the income limit, they won’t have to reapply for payments for up to two years.
They will also remain eligible for their concessions cards for two years, Mr Albanese said.
Treasurer Jim Chalmers said the move would “encourage older Australians to work a bit more if they want to”, and would cost an additional $55 million.
Pensioners can earn $7800 a year before it affects their payment, and the proposed policy will boost that by $4000 as “some sort of income credit, so that people can work a bit more if they want to”.
The Treasurer said he had been working on this policy since before the election, and that the final cost would be included in the October budget.
“It’s a time limited measure, we hope spurs some additional workforce participation among older Australian workers,” Dr Chalmers said.
The $4000 temporary credit will be available until June 30, 2023, subject to the passage of legislation.
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