Seniors appeal for zero benefit penalties for working
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As labour shortages across Australia persist, seniors around the country are finding more reason and space to return to the workforce.
Seventy-eight-year-old Margaret Anderson is one of them.
Working a few shifts a week at restaurant 360Q in the coastal town of Queenscliff, Victoria, this part-time job as a waitress has given Anderson a new lease on life.
'I love the people I'm working with and … the people I meet. I'll do this for as long as I can. I love every minute of it,' she told A Current Affair.
Unfortunately, in previous years, those who were getting a pension couldn’t do this easily.
Individual seniors were only allowed to earn up to $190 per fortnight (for couples, this was $336 combined) after applying the $300 Work Bonus eligible income — any more, and they risked losing access to some benefits.
The federal government made a change last September, expanding the work bonus initiative. Aged and veteran pensioners can now earn an extra $4000 in the current financial year without penalty, boosting the income allowance from $7800 to $11,800.
This change allows working seniors more breathing room, especially as cost-of-living pressures bear down on everyone.
Margaret said she loves the initiative, and Di, another retiree who works at a nearby restaurant called Circa 1902, shares this sentiment.
'Particularly now where there's such a shortage of workers, and it allows people to have a little bit more freedom to get back to the work they're doing,’ she said.
But Di and Margaret might have to adjust their work hours again as the expanded work bonus balance reverts back to $7,800 next year.
This looming backstep has prompted calls for more permanent change to be made through legislation.
‘I think we need to recognise that we have a jobs crisis in Australia. Four hundred fifty thousand plus jobs are going begging, and we've got 4.5 million Australians over 65,’ said Ian Henschke, Chief Advocate of National Seniors Australia.
He believes Australia doesn’t have to look too far for inspiration.
'New Zealand’s got a simple system, you work, you pay income tax, and they just get on with it,' Ian said. 'And surprise, surprise, they have a much higher workforce participation rate than we do here.'
‘New Zealand has a workforce participation rate of 71 per cent. We’ve got 66 per cent. They’ve got five per cent more of their population working, and most of it is older workers. That’s where they’re getting their workers from.’
![photo-1607863680198-23d4b2565df0.jpg photo-1607863680198-23d4b2565df0.jpg](https://seniorsdiscountclub.com.au/data/attachments/13/13996-23ce772476b6ceca218383cca179567c.jpg)
Ian argues that allowing those on a pension to return to work freely creates a positive societal situation.
‘We need workers desperately in aged care, childcare, home care, disability care and agriculture and tourism and hospitality,’ he said.
‘So letting the pensioners work and earn a bit more is actually going to help.’
Barry Iddles, the owner of 360Q, agreed that it’s high time rules be amended in favour of working seniors.
'It's wrong to penalise them. I don't think they should have their pension affected at all,’ he said.
Iddles said he previously included seniors in an earlier call for restaurant staff he made within Queenscliff, and he confirmed he received great feedback — but there was an oft-repeated catch.
‘There's a lot of them saying “We can only work $200 a fortnight,” so it's not a lot,’ he said.
‘I'd like to see them work three or four shifts if they want.’
In response, Social Services Minister Amanda Rishworth said that the expanded work bonus balance is part of the government’s efforts to improve the lives of senior Australians.
‘One of these is the boost to the Work Bonus income bank which began in December and will allow older Australians and Veterans the ability to work more without losing any of their income support payments,’ her statement read.
‘Around three per cent of pensioners report any income, but for those who do want to work, this gives them more choice.’
‘Giving older Australians the choice to engage in the workforce not only benefits them by ensuring they keep more of their pension, but it is also an important step towards addressing Australia's labour shortages.’
It remains unclear if the government has plans to retain the $4000 work bonus balance top-up beyond its stated end-of-year deadline.
Earlier, Centrelink announced changes in its payment scheme, which could see some recipients having their payments automatically suspended.
Among these revised rules are Age Pension recipients having their pensions reduced to $0 if income reaches set thresholds for individuals and couples per fortnight.
Members, have you returned to the workforce or are you looking to rejoin soon? What do you feel about Australia’s current rules on working for seniors?
Tell us in the comments section below!
Source: Facebook/A Current Affair
Seventy-eight-year-old Margaret Anderson is one of them.
Working a few shifts a week at restaurant 360Q in the coastal town of Queenscliff, Victoria, this part-time job as a waitress has given Anderson a new lease on life.
'I love the people I'm working with and … the people I meet. I'll do this for as long as I can. I love every minute of it,' she told A Current Affair.
Unfortunately, in previous years, those who were getting a pension couldn’t do this easily.
Individual seniors were only allowed to earn up to $190 per fortnight (for couples, this was $336 combined) after applying the $300 Work Bonus eligible income — any more, and they risked losing access to some benefits.
The federal government made a change last September, expanding the work bonus initiative. Aged and veteran pensioners can now earn an extra $4000 in the current financial year without penalty, boosting the income allowance from $7800 to $11,800.
This change allows working seniors more breathing room, especially as cost-of-living pressures bear down on everyone.
Margaret said she loves the initiative, and Di, another retiree who works at a nearby restaurant called Circa 1902, shares this sentiment.
'Particularly now where there's such a shortage of workers, and it allows people to have a little bit more freedom to get back to the work they're doing,’ she said.
But Di and Margaret might have to adjust their work hours again as the expanded work bonus balance reverts back to $7,800 next year.
This looming backstep has prompted calls for more permanent change to be made through legislation.
‘I think we need to recognise that we have a jobs crisis in Australia. Four hundred fifty thousand plus jobs are going begging, and we've got 4.5 million Australians over 65,’ said Ian Henschke, Chief Advocate of National Seniors Australia.
He believes Australia doesn’t have to look too far for inspiration.
'New Zealand’s got a simple system, you work, you pay income tax, and they just get on with it,' Ian said. 'And surprise, surprise, they have a much higher workforce participation rate than we do here.'
‘New Zealand has a workforce participation rate of 71 per cent. We’ve got 66 per cent. They’ve got five per cent more of their population working, and most of it is older workers. That’s where they’re getting their workers from.’
![photo-1607863680198-23d4b2565df0.jpg photo-1607863680198-23d4b2565df0.jpg](https://seniorsdiscountclub.com.au/data/attachments/13/13996-23ce772476b6ceca218383cca179567c.jpg)
For some, what they get on Age Pension and other types of government aid isn’t enough to go by. Image Credit: Unsplash
Ian argues that allowing those on a pension to return to work freely creates a positive societal situation.
‘We need workers desperately in aged care, childcare, home care, disability care and agriculture and tourism and hospitality,’ he said.
‘So letting the pensioners work and earn a bit more is actually going to help.’
Barry Iddles, the owner of 360Q, agreed that it’s high time rules be amended in favour of working seniors.
'It's wrong to penalise them. I don't think they should have their pension affected at all,’ he said.
Iddles said he previously included seniors in an earlier call for restaurant staff he made within Queenscliff, and he confirmed he received great feedback — but there was an oft-repeated catch.
‘There's a lot of them saying “We can only work $200 a fortnight,” so it's not a lot,’ he said.
‘I'd like to see them work three or four shifts if they want.’
In response, Social Services Minister Amanda Rishworth said that the expanded work bonus balance is part of the government’s efforts to improve the lives of senior Australians.
‘One of these is the boost to the Work Bonus income bank which began in December and will allow older Australians and Veterans the ability to work more without losing any of their income support payments,’ her statement read.
‘Around three per cent of pensioners report any income, but for those who do want to work, this gives them more choice.’
‘Giving older Australians the choice to engage in the workforce not only benefits them by ensuring they keep more of their pension, but it is also an important step towards addressing Australia's labour shortages.’
It remains unclear if the government has plans to retain the $4000 work bonus balance top-up beyond its stated end-of-year deadline.
Key Takeaways
- Seventy-eight-year-old Margaret Anderson loves working part-time at a restaurant, and many more like her could earn more if it weren’t for penalties imposed on income for those on Age Pension payments.
- The federal government expanded the work bonus initiative in September last year, which boosted pensioners’ income allowance from $7800 to $11,800.
- However, the expanded balance is set to revert on January 1, 2024, meaning a lot of employed seniors would have to keep a close eye on their income and watch out for penalties.
- Advocates of more work for senior Australians are calling for permanent legislation to be implemented, in line with New Zealand’s system, to give pensioners the option of working without being penalised.
Among these revised rules are Age Pension recipients having their pensions reduced to $0 if income reaches set thresholds for individuals and couples per fortnight.
Members, have you returned to the workforce or are you looking to rejoin soon? What do you feel about Australia’s current rules on working for seniors?
Tell us in the comments section below!
Source: Facebook/A Current Affair