I am writing to bring to your attention a significant issue affecting working pensioners in our community.
The Problem:
Current pension rules create substantial barriers for retirees seeking to re-enter employment.
Under the existing “Work Bonus” system, pensioners can earn only $300 per fortnight ($150 per week) before their pension is reduced by 50 cents in every dollar earned above this threshold.
This $300 threshold is not indexed and has not changed since July 2019.
This system effectively penalises pensioners who want to contribute their skills and experience to address Australia’s current labour shortage.
The combination of pension reductions and inflated tax obligations through Centrelink’s ATO reporting creates a situation where working simply isn’t financially viable for many retirees.
The Opportunity:
There is a ready workforce of experienced, skilled pensioners who could help fill employment gaps in our community.
However, the current system discourages participation, creating a lose-lose situation for both retirees and employers.
Taking Action:
In June 2024, I presented ePetition EN6227 to the House of Representatives, proposing reforms to the Work Bonus system that would:
– Provide genuine incentives for aged pensioners to return to work,
– Help address skills shortages,
– Potentially save the government $2.8 million annually,
– Maintain support for those unable to work.
Despite the petition’s merit, it was rejected by then Minister of Social Services, Amanda Rishworth, without detailed reasoning or structured argument.
The response to the petition included, ‘’The Work Bonus recognises that continuing employment for older Australians provides financial and non-financial benefits for individuals and brings substantial benefit to the broader community.”
I’ve had several other responses from Government Departments, generally containing cut-and-paste answers stating what the current situation is, a typical delaying tactic, rather than addressing the issue
I am now lobbying MPs and Senators to revisit this matter and seeking community support to highlight the need for reform.
No donations, no subscription, fees, just registered support – we need numbers to be heard.
Community Interest:
This issue directly affects many residents throughout Australia who are caught between wanting to remain productive members of society and facing financial penalties for doing so.
I believe your readers would be interested in understanding how current policies impact local retirees and the broader community.
Further information is available at workingpensioners.com.au
– Greg Jarvis
Working Pensioners
