All five Living Cost Indexes jumped in the March 2024 quarter. But while employee households carried the brunt of higher prices, self-funded retirees emerged relatively unscathed.
China needs its 1.4 billion citizens to start spending. But its ageing population is reluctant to loosen the purse strings, especially while the social security net remains inadequate.
Rule letting pensioners earn extra $4,000 in income set to go permanent
Australian seniors will be able to continue earning an additional $4,000 under the Work Bonus program without risking their income support, after the federal government announced it would make the program permanent as part of a bid to address labour pressures.
The proposal, unveiled in a new white paper on employment released Monday, would make permanent the Labor government’s decision, first announced at last year’s Jobs and Skills Summit, to allow pensioners to accumulate up to$11,800 in their income bank, for seasonal or ad hoc work, without affecting their pension. It would also double the length of time pensioners and others can receive income before losing access to government support.
Previously, pensioners could earn only up to $7,800 under the Work Bonus, and that was set to be the case again when the extension expired at the end of the year.
The plan, a “roadmap to position the Australian labour market for the future”, is aimed at addressing structural barriers in the national social security system. Treasurer Jim Chalmers noted on Monday that the government has already implemented 70 policies in support of the program, with 80 more under way, as well as 31 future reform directions and nine new policies.
“Our objective here is a more dynamic and a more inclusive labour market as part of a more dynamic and more inclusive economy, where more workers and businesses and communities can adapt and thrive and benefit from change,” he said.
The white paper has five main themes, Chalmers said, beginning with full employment, secure jobs and strong wages, and “skills now and into the future”. It also aims, he said, to increase productivity and “address some of the barriers which are preventing people from grabbing the jobs and opportunities even in an economy where unemployment has a ‘three’ in front of it.”
The extended Work Bonus program provides that, upon retirement, every pensioner will have immediate access to $4,000 for paid work without putting their pension entitlements in jeopardy. The white paper also calls for extending the so-called nil rate period for those on income support, from three months to six months. That policy is aimed at removing the disincentive that may arise when a person is offered short-term work but worries about losing concessions.
The changes are “about smoothing that pathway from work into retirement and ensuring that pensioners can still do some work and still receive their full pension”, according to Social Services Minister Amanda Rishworth (pictured).
“We believe these are the right settings to support pensioners moving into work and ensure that their work patterns are supported.”
