Older Australians Should Keep More of What They Earn

Older Australians Should Keep More of What They Earn

07 Jun 2023

We believe veterans and older Australians should not be penalised for working a few extra hours if they want to.

That’s why the Coalition has announced a policy to double the amount of income pensioners can earn before their pension payments are reduced.

This would mean that pensioners would be able to earn up to $600 per fortnight and still receive the maximum pension payment.

The Labor Government’s temporary increase to the income limit for pensioners falls well short of the Coalition’s policy as it only allows pensioners to earn an extra $153 a fortnight.

What’s even more disappointing is that it’s only a temporary measure and it expires on 31 December this year. As of January 2024, pensioners will once again be disincentivised from working by having their pension reduced for every dollar they earn above $300 a fortnight.

Not only will this have a negative financial impact on the 80,000 pensioners and veterans who currently choose to work but it will also make Australia’s workforce shortages worse.

Further, working has well-documented social and mental health benefits which contribute to a happy and healthy retirement.

This is a sensible policy that rewards those who have worked hard their whole lives, paid their taxes and deserve to keep more of what they earn.