A decade ago, Deloitte Access Economics reported that an extra 3 percentage points on participation among workers aged 55 and over would result in a $33 billion boost to Australia’s GDP. A 5 percentage point lift would add around $48 billion. And this is just one of a range of benefits for the economy, the government, individuals who want to keep on working – and, given the current skills shortage limiting just about every industry and sector – for business owners who are struggling to find staff.
Yet still older worker who receive the aged pension are actively discouraged from going back to work. If they earn more than $300 a fortnight or $7800 a year they will receive a lower pension.
The need for an opt-in scheme
Peak retail lobby group the National Retail Association believes that mature age workers could help solve the problem for employers if the government established an opt-in scheme for pensioners.
“The business community wants older Australians to work to ease the pressure of workforce shortages,” said Chief Executive Dominique Lamb. “The government needs to make necessary changes to allow them to participate in the workforce without losing their pension as an incentive to engage people in paid work.
“We need to consider all possibilities to boost workforce participation for people who are willing and able to work.”
Benefits across the board
Engaging the mature age population in the workforce would benefit more than just the retail sector.
“Regardless of the industry, encouraging mature age Australians to return to the workforce will be good for them, good for business and good for government revenue,” Lamb said. “Family businesses and other small businesses desperately need to fill the labour gaps. Arrangements to support older Australians to join the workforce are critical for both the business community and mature age population.
“We need to ensure all Australians who are willing and able to join the workforce to be part of the long-term solution to the skills crisis.”
