Shayne Neumann (Blair, Australian Labor Party) Share this | Hansard source

Last night I was speaking on this bill, the Social Security and Other Legislation Amendment (Supporting the Transition to Work) Bill 2023, in the Federation Chamber. I will be speaking in continuance today. From 1 January 2024, pending the passage of this bill, all pensioners over age pension age and eligible veterans will have a maximum work bonus limit of $11,800, up from $7,800 currently. All new age pension recipients will have a starting work bonus income bank balance of $4,000 rather than zero to give an added incentive to maintain a connection with the workforce when they first transition to the pension. In addition, existing pensioners who haven't used their one-off $4,000 credit yet will be able to keep it in their income bank and use it at a later date. This builds on the temporary work bonus measure the government announced at the Jobs and Skills Summit. This temporary measure is in place from 1 December 2022 to 31 December 2023.

This announcement was warmly received by pensioners, stakeholders and peak bodies representing senior Australians. Indeed, many senior Australians have explained how the temporary changes to the work bonus have supported them to work more and make a real difference in their lives. That's been my experience as a federal MP when people have come and seen me in my electoral office about the issue.

The bill before the House today has permanently extended these changes from 1 January 2024 to all eligible new recipients over pension age. As a result, more than 195,000 senior Australians who start on a pension every year will be given an added incentive to maintain a connection to the workforce and continue to contribute their skills, talents, knowledge and experience to the labour market. We will be better for that. There is no doubt about that.

On top of this, the ability to undertake meaningful work has been shown to benefit the health and wellbeing of veterans in particular after military service. In opposition, I was pleased to announce our veterans employment policy, which included programs around the recognition of veterans' skills and experience and support for further study and training and support for employers. There's benefits for veterans in the legislation before the House today.

I know very well veterans bring to the civilian workforce so many transferable skills they have gained in the ADF, such as leadership, teamwork and the ability to work under pressure and a strong mission focus, but they can sometimes struggle in the transition to civilian life and the civilian workforce. They are a vastly underutilised resource. Fortunately, many do fall on their feet and end up working in areas like the Public Service, the defence industry, policing or running their own businesses. Measures in this bill will complement the government's veteran and employment policy and help ensure our community continues to benefit from their wealth of experience. There are about 7,000 veterans and their families in my election of Blair. It's one of the largest veteran populations in the country, so I know how important this particular piece of legislation before the chamber today is to them.

More broadly, mature-age workers are a great untapped market, having years of knowledge and skills to offer employers. Giving older Australians, including veterans, the choice to engage in the workforce not only will benefit them by ensuring they keep more of their pension but also is an important step towards addressing Australia's labour shortages. My electorate based around Ipswich and the Somerset region is the one of the fastest growing areas in the country, and we are experiencing severe skill and workforce shortages. Many employers are calling out for experienced workers, particularly in the health and childcare sectors and in hospitality. So it makes sense to offer incentives for older Australians to encourage them back into the workforce to share their skills and abilities.

Importantly, the income bank credit offers flexibility for those who want to take up extra work and work for short periods. There will be plenty of short-term seasonal jobs coming up over the Christmas period and the summer period also. We know a lot of pensioners want flexibility. They don't necessarily want to work all year round. They often prefer seasonal jobs. In a regional and rural electorate like mine, that is really important. There are many seniors who are doing seasonal work and enjoying it because it keeps them mentally and physically active, and their employers value them as mature workers because of their work ethic, commitment, life experience and availability particularly for mentoring, which is a crucial aspect in the workplace. It is a win-win for employers and workers.

I know many people are doing it tough on limited fixed incomes and are feeling, as they age, cost-of-living pressures. This might encourage them to engage in ad hoc work to earn a little bit more cash without their income support taking a hit. The festive season is a great time to pick up part-time or casual work, and the work bonus will help older Australians to stay engaged in the workforce while getting some extra support. These changes broaden their choices and increase flexibility while helping them to break down barriers faced by older Australians who want to be in the workforce.

The changes to the work bonus complement existing arrangements that enable age pensioners to earn an amount of income before their pensions begin to reduce. This includes the income-free area and the tapering arrangements which apply to all types of income, along with the work bonus which is specifically designed to reward pensioners who are working. It provides incentives that mean pensioners with employment income can earn more before their pensions are affected. That's the best way to target additional support for pensioners who want to take on extra work.

Alongside the changes to the work bonus are amendments to double the existing employment income nil rate period to provide support to income support recipients when they take up work. The employment income nil rate period is available to recipients for a range of payments—including JobSeeker payment, youth allowance, Abstudy living allowance, Austudy, parenting payment and pensions—and enables income support recipients to be considered as still receiving their payment when their fortnightly rate is reduced to nil, due to personal or partner income, for the purpose of qualifying for supplementary benefits. This is an important measure. I know it's critical for my electorate and for the many people I've spoken to about these issues. They are sensible, practical, targeted changes, and they complement our economic inclusion measures to strengthen the safety net and tackle cost of living in the May budget. With these, the government's providing additional support to working-age and school payment recipients as well as support through Commonwealth rent assistance and expanded access to parenting payment single. These measures are doing a lot to help Australians of all ages get into the workforce and keep our objective to remove barriers to employment and broaden opportunity for all Australians.

I commend the bill to the House.

See this speech in context