National Seniors Australia (NSA) chief Ian Henschke believes Australia’s inflexible aged pension means testing discourages older Australians from working, thereby contributing to labour shortages.
A recent NSA survey of pensioners revealed that 20%, or roughly 500,000, would consider re-entering the workforce if they could keep their pension entitlements and merely pay tax on their work income.
Speaking on Sky News, Henschke noted that strict means testing rules discourage pensioners from participating in the labour market because they lose 82 cents in the dollars in tax.
