Pensioners set for income threshold boost

Pensioners will soon be able to earn $300 a fortnight without it hurting their welfare payments under draft laws which passed the first hurdle of parliament.

The proposal cleared the lower house alongside two other measures - means testing pooled-retirement-income products and allowing more older Australians to access the pension loan scheme - at an overall cost of $258.6 million over the forward estimates.

"Overall, this bill gives retirees greater choice and flexibility when it comes to managing their finances in retirement," Social Services Minister Paul Fletcher said on Wednesday.