Proposed Work Bonus increase should be fully supported
The Opposition leader, Peter Dutton, has raised the prospect that the Work Bonus should be doubled from its current level of $300 per fortnight or $7,800 a year to $15,600 a year.
While it was promptly dismissed by the Federal Government as costing too much, this is a great suggestion and something everyone receiving an aged pension should support it.
The Work Bonus scheme was introduced in 2009 to allow older Australians to effectively do 'a bit of work on the side' and not have their age pension entitlements reduced.
It means you can earn up to $7,800 a year from a bona fide employer and not have it impact on your pension entitlements, the way an extra $7,800 in investment income might.
Initially, it was put in place to encourage older Australians to pick up work, say mowing lawns or babysitting and not be penalised for doing so.
However, it was quickly found to have the additional benefit of encouraging retirees to pro-actively remain engaged in their local communities and so stay more active.
This is even more important given the current staff shortages being reported by employers around the country and could well prompt many older Australians to consider picking up an extra day's work in a local small business.
It will also help many older Australians to better cope with the surging cost of living being experienced by everyone in Australia but of course impacting those on a fixed income the hardest.
It's also difficult to see how this can impact on the Federal Government's revenue. Someone who is entitled to receive an aged pension will be entitled to receive it whether they work extra hours or not.
Any missed reduction in their entitlements would be small if any and yet the benefit to individual pensioners and the business community generally could be significant.
So, if you have an opportunity to contact your local member of parliament, I think this is something you should raising with them regardless of which political party they belong to.