While yesterday’s Federal Budget did offer some welcome news for grey nomads, there was also significant disappointment.
The halving of the fuel excise will save travellers 21 cents a litre at the bowser, and a one-off $250 payment to veterans and concession cardholders will, of course, also help many stretched budgets.
But it was the measure that was missing that has upset many seniors advocates.
Ahead of the Budget, there had been significant speculation that there would be some form of relief for pensioners who wanted to work more and still earn their pension.
However, that relief was conspicuously absent from the Treasurer’s announcements.
Ian Henschke, the Chief Advocate, National Seniors Australia, said it was disappointing that the Budget hadn’t delivered on this front as it would have offered longer-term benefits to pensioners … and potentially unleashed a ‘grey army’ of workers.
Under the current age pension income test, a single person loses 50¢ in every dollar they earn over $180 a fortnight. A couple loses 50¢ in every dollar they earn over a combined $320 a fortnight. The current age pension is $882 a fortnight.
Mr Henschke said the 50¢-in-the-dollar reduction in the pension meant for many older Australians it was not worth working an extra day or two a week.
National Seniors argues axing the income test for pensioners with limited assets would bring many more potential workers into the labour market. It said that axing the income test on the aged pension would be a powerful incentive for people in their 60s and 70s to stay in the workforce.
The high tax rate has been blamed for the tiny proportion of pensioners who work. A briefing paper being circulated by those calling for change says fewer than 3% of Australian pensioners earned income from paid work compared to almost 25% in New Zealand, where people can work without losing their pension.
Anecdotal evidence suggests that many grey nomads who are keen to help fill job vacancies particularly in remote areas, are extremely conscious about how working affects their pensions.
Yes I am put off. I still have many years left to work. Most grey nomads have there own accomodation. Grey nomads are reliable and have years of experience behind them.
I have said it many times I am willing to work part time while on the road full time. If they want to reduce our pension then it should be taken over the full year not for the couple of weeks we work. I only work for companies that are willing to pay me with a fuel card because the rate of 50 cents in the dollar just doesn’t make sense to me.
After 11 years of retirement I have returned to relief teaching. Once I have used up my ‘work bonus’ I will need to restrict my employment to about 1 day a month if I want to keep my full pension. At the moment schools are in desperate need of relief teachers and I could work full time and my two clones could probably do an equal amount of relief. Seems very short sighted of the Commonwealth Government not to develop a strategy to address the shortage of workers across the country at the moment.
I don’t know where you get your $882 from. It’s $744.40 if part of a couple even if the other doesn’t earn a cent. For a single person it’s $987.60. I would dearly love $882 if you can arrange it for me.
I loose 200 odd a fortnight helping a company out because they cant get staff is it worth it, its good mentally for yourself but i should be getting praised for helping out but no all governments want to punish people for contributing
I work part time a d sometimes get a pension amount and sometimes don’t. But I enjoy working part time and at the end of the day I am much better off than not working at all. It would be nice to get more pension but I’m not depending on that.. for now anyway (aged 67)
I worked for 53 years in the work force before retirement and payed my taxes to receive the pension on retirement
yes I would go back to work to help out the job shortage situation BUT not if it requires me to not receive my pension entitlements that I already work to receive from the government after paying TAX all those years