Age and Veterans Pensioners will be able to earn an additional $4000 over this financial year without losing any of their pension due to the Albanese Labor Government providing a one-off income credit designed to give older Australians the option to work and keep more of their money.
Following the successful Jobs and Skills Summit in Canberra, an immediate $4000 income credit will be added to the income banks of Age Pensioners from December to be used this financial year.
The temporary income bank top up will increase the amount pensioners can earn from $7800 to $11,800 this year, before their pension is reduced.
The measure is designed to enable pensioners who want to work to immediately boost the supply of labour to help meet shortages.
Pensioners will be able to do so without losing their pension, either in short stints or over the course of a year.
The $4000 temporary credit will be available until June 30, 2023, subject to the passage of legislation.
The Government will also look to strengthen legislation to ensure pensioners who are working don’t get unnecessarily kicked out of the social security system.
The Government will expedite legislation to ensure pensioners don’t have to reapply for payments for up to two years if their employment income exceeds the income limit. Currently their connection to social security is cancelled after 12 weeks of exceeding the income limit.
Pensioners will also retain access to their Pensioner Concession Card and associated benefits for two years.
These changes will give older Australians the option to take up work if they wish to do so.
This is an important measure to ensure older Australians have the option to remain in the workforce if they wish to without losing access to their pension and benefits.
It will mean if they wish to work for short periods of time they can also, broadening their choices.