Under two significant reforms made by the federal government as part of its new employment white paper, retirees who choose to reenter the workforce will be able to do so with a great deal less concern of losing access to their income support.
The government declared the work bonus, which lets retirees keep more of their pension while working, will be permanently increased in an effort to boost the workforce.
The nil rate period will also double from six to twelve fortnights at the same time, giving anyone receiving income support—including those on JobSeeker, Youth Allowance, and pensions—twice as long to start earning money from a job before they stop getting government assistance.
All new age and veteran pension applicants will begin the year with a beginning work bonus income bank balance of $4000 rather than zero, if legislation is approved by the legislature.
The current raised maximum work bonus balance limit of $11,800 rather than $7800 will continue to apply to both current recipients and new ones.
According to Social Services Minister Amanda Rishworth, “We are removing the disincentive that occasionally may occur because a person might get offered some short-term work, but as a result may fear the loss of concessions and even worried that if the work does not work out, they will have to reapply for JobSeeker.”
As a result, “this extension will enable someone to engage in temporary employment while continuing to receive income support, allowing a smoother transition and enabling a person to engage in temporary employment without feeling there is a disincentive if that employment does not continue.”
Through 2026–2027, the two modifications will cost a total of $85 million. Jim Chalmers, the treasurer, predicted that the strategy will assist the workforce improve.
According to Chalmers, “this is about putting the right incentives in place to get more Australians into work.” “We want to make sure that the stepping stones are in place to enable more Australians to take up a job or work more hours.”
A national skills passport and a redefining of unemployment to better reflect the reality of underemployment in the modern economy are also included under the white paper.
