Increase the Work Bonus providing Aged Pensioners incentive to re-enter the workforce and ease the current skills shortage at no cost to Government, without disadvantaging those unable to work.

Why:

• The current Work Bonus system discourages Pensioners to return to the workforce.
• A Pensioner earnings gained from work over $150 p/week is reduced by 50%, this has not changed since July 2019.
• Reduce a black cash economy.

Australian average wage 2009/10 to 2024     88% increase

Pension Sept 2009 to March 2024                  66% increase

Work Bonus Sept 2009 to March 2024           20% increase

The $4,000 Work Bonus Cap increase had an actual one off value of $2,000, not enough to entice Aged Pensioners to change their lifestyle.

70,892 Aged Pensioners earned at least $250 in the last fortnight of March 2023. This number would increase to 99,691 if pre-covid levels were restored.

Increasing the threshold from $300 to $500 p/fortnight and restoring participation to pre-covid levels could realise a saving to Government of $2,880,000 or $70 Million including GST on additional spending.

AIM:

To immediately change the Work Bonus system providing Aged Pensioners incentive to re-enter the workforce and ease the current skills shortage at no cost to Government without disadvantaging those unable to work.

Action Required:

1. Increase Work Bonus Threshold from $300 per fortnight to $500 per fortnight.
2. Index Work Bonus Threshold in line with Aged Pension review every March and September.
3. Consider combining Couples Work Bonus balance
4. Revisit ePetition EN6227 presented to the House of Representatives, Australian Parliament, June 2024

www.workingpensioners.com.au