In a submission to the Federal Budget, peak seniors advocacy body, National Seniors, has called for a relaxing of work rules to encourage pensioners to stay longer in the workforce.
A key part of the budget submission is National Seniors’ ‘Let Pensioners Work’ campaign, calling for the government to ease employment rules which it says unfairly penalise pensioners working more than one day a week.
It says currently an aged pensioner starts to lose 50 cents in the dollar of their pension once they earn $240 or more a week and they pay income tax as well.
National Seniors Chief Advocate Ian Henschke, says changes to the age pension income test would not be a burden on the budget.
“In fact, it would be quite the opposite. If older aged pensioners work more, they pay more in income tax, so they go from being a financial liability in the government’s eyes to a revenue producing asset.”
“In Australia only 2.9% of aged pensioners work compared to 24.8% in New Zealand, which allows older people to work regardless of whether they receive the pension or not.”
The submission also addresses Seniors home ownership, with National Seniors saying the vast majority (92%) of older Australians want to stay in their home as they age, but for many their family home is no longer suitable.
Many older Australians need to downsize, however that move is made harder by rules which impact their pension when they sell the family home, said Mr Henschke.
He said the rule traps thousands of older Australians into staying in their larger, high maintenance homes.
“Pensioners who stay in larger homes, no longer suitable to them, have a higher risk of injury or are forced prematurely into residential aged care.”
“If the barrier of impacting their age pension was removed, more older Australians would downsize, improving their mental and physical health and taking pressure off the residential aged care sector,” he said.
National Seniors says its regular member surveys also showed that many want to leave behind a greener future for their children and grandchildren.
Its budget submission is campaigning for the government to create Clean Energy Bonds to enable older Australians to invest safely in green infrastructure projects.
It recommends the bonds be guaranteed in the same way bank deposits are, giving seniors a safe savings option to invest in clean energy projects. Returns would then be paid to investors fortnightly through Centrelink.
Ian Henschke says the idea came partly from National Seniors own members.
“Our members tell us not only do they believe in climate change, but they are willing to make changes to help reduce its impact,” Mr Henschke said.
With latest AEC figures showing that almost half (49%) of voters are aged 50 and over, Mr Henschke says governments must listen to organisations like National Seniors.
“We’ll have plenty more to say once an election is called and as we showed at the last election, the grey vote will help determine who gets to live in the Lodge and who is in opposition,” he said.
To see the full Budget Submission document click here.
