Push for pension rules change to get seniors back to work

A seniors organisation is pushing for a change to pension rules that would allow older Australians to keep working, potentially filling record numbers of job vacancies.

National Seniors Australia say the plan would let retirees keep their pension entitlements while still remaining employed.

Currently, Australians receiving the pension can only work a minimal amount before their income is subject to heavy penalties, alongside income tax.

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National Seniors Australia chief advocate Ian Henschke said pensioners should be able to work without facing penalties.

"They have trialled it in New Zealand and it works," he said.

"They have 43 per cent of their 65 to 75 workers there, and in Australia we have three per cent of our pensioners still working."

Mr Henschke told Today it would also help the current Budget "black hole" left by COVID-19.

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"When (seniors) work they pay income tax, super contributions tax, etc," he said.

Seniors could also help fill workplace roles currently left vacant after years of border closures.

"Now we have all of the problems with labour shortages, and the solution from government is to bring in hundreds of thousands of people from overseas who can't come here in many cases because their countries won't let them go," he said.

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"What we have to do, is recognise this is a sensible policy that will fix the budget, that will help Australia get out of its labour shortage at the moment."

Mr Henschke even suggested whichever major party adopted the policy would gain a keen electoral advantage.

"There are one in two voters now over 50, so pick this one up and run with it," he said.