Dai Le (Fowler, Independent) Share this | Hansard source

I rise to speak on the proposed amendments to the Social Services and Other Legislation Amendment (Workforce Incentive) Bill 2022. I acknowledge the government's proposal to incentivise pensioners and disability support pension recipients to stay in the workforce in light of these recent workforce shortages. I think this is a step in the right direction. However, I think what this bill does is a drop in the ocean compared to what the government should be doing to get pensioners back into the workforce.

We are in a cost-of-living crisis. With the rising cost of fuel, food and petrol, it comes as no surprise that many pensioners are feeling the pinch. (Quorum formed) Many pensioners want the opportunity to earn more income to maintain a comfortable standard of living. According to a recent survey by the Association of Superannuation Funds, only six per cent of respondents believe that the age pension level of about $40,000 a year is enough to retire on. Thirty-three per cent believe a comfortable retirement standard of $65,000 a year would be enough. It's clear that Australians think the pension alone is not enough to help sustain the increased cost of living.

However, under this new work bonus scheme, pensioners could accrue a total income bank of $11,800 a year in which they are able to take seasonal shifts. This gives a potential income of $491 a week for pensioners if they were to work every week for six months, which is about two shifts a week. This scheme was originally meant to last for seven months until June 2023. While this is a good solution for short-term and seasonal workers, it doesn't do much in the way of incentivising seniors to stay in the workforce and to keep consistent shifts.

National Seniors Australia have argued that the six-month scheme is far too short to encourage uptake and that it requires time for the government to effectively communicate these new changes to both pensioners and businesses. Our business community, which is comprised of 98 per cent small businesses, would also require the necessary multilingual resources to inform the senior and pensioner communities of these new work opportunities. However, I'm happy to say that after consultations with my office and that of the member for Mayo, Rebekah Sharkie, the government heard our concerns. The pilot scheme will now be amended to extend until December 2023.

In an electorate like Fowler, where nearly 77 per cent of residents use a language other than English at home, there must be a plan to ensure they're not forgotten by this new scheme due to lack of communication from the government. A one-year pilot program would be long enough to educate and inform my pensioners and businesses, who hail from many different cultural backgrounds, but would also give ample opportunity for new pensioners to take up the scheme. This is definitely a step in the right direction. However, more can be done to incentivise seniors to re-enter the workforce.

National Seniors Australia also raised that the $4,000 limit is far too low to truly incentivise seniors to participate overall, and is not nearly high enough to incentivise pensioners to navigate the complexities of Centrelink. The Department of Social Services has also reported that the original six-month pilot may only result in an uptake of 1,000 extra workers a year, which is a ridiculously slim figure considering we have over 470,000 job vacancies around Australia. What my constituents are calling for are consistent work opportunities, not only so they can put food on the table and increase their quality of life but also so they can be productive citizens and feel like they're part of the community in which they live.

I refer to my constituent, Katherine Allen, who is 29 years of age, has three kids and is on a disability support pension. She has expressed her desire to work and contribute to the local economy. However, she has found that getting consistent work would reduce her pension to the point where it would be impossible to support her and her three children. With three mouths to feed, she says it's more financially viable to stay on the pension rather than to work and has spent her time volunteering for local community groups instead. We must take a look at the entire pension system as a whole, instead of focusing on small schemes that only benefit a few.

It's unfair that pensioners like Katherine are scared of having their pensions taken away just because they want to give back to the community by working at their local cafe or giving a few extra days to a nursing home. If a pensioner were to use up the $11,800 workforce income bank, they're still allowed to earn $190 a fortnight on top of that. However, even this barely equates to a single day's work. If they exceed the $190 limit then their pension is reduced by 50c for every dollar earned over the income limit. This is a small incentive for pensioners to take on a long-term job, if they fear they could have their pensions docked for working extra hours. This would only drive pensioners to work in what the ATO refers to as the 'shadow economy'—working cash-in-hand jobs that are unregulated and untaxable. I know this is very much the norm in the community of Fowler, where many prefer cash-in-hand jobs, as they're deterred by the complex reporting mechanisms of Centrelink and aren't willing to risk their pensions for a few sporadic shifts over the year.

The government must look to invest more into overhauling the pension scheme so that people aren't afraid to work. In saying this, I appreciate the measures taken in schedules 1 and 2 of the bill to ensure that a pensioner's concession card is suspended for two years and not cancelled if their total income earnings taper their pension to nothing. This means that if a pensioner were to lose a consistent source of income or, for whatever reason, chooses to get back on the pension, they should be able to transition back seamlessly through a less-complex system rather than having to go through the process of reapplying for a new pension with Services Australia. This also means that a pensioner is able to access their concession card to access cheaper health services and medicines, which I know that pensioners fear they could lose access to should they take on additional work.

With more and more GPs now having to turn away from bulk-billing, basic health-care services are becoming less affordable for pensioners. The first point of contact with a health issue is now becoming less accessible. GPs in my area who still choose to bulk bill are being so inundated with patients that locals have to wait weeks just to see them. The Australian Medical Association have told me that some of their doctors are at the point where they must stop bulk-billing to run a financially sustainable medical centre, but they refuse to do so as many of their elderly patients would opt to avoid seeing the doctor altogether if they needed to pay out-of-pocket costs.

The repercussions of stopping bulk billing in a low socio-economic area like Fowler are detrimental to the overall health and wellbeing of our pensioner community. With cost-of-living pressures, we cannot expect seniors and pensioners to break their budget just to get simple healthcare services. Giving pensioners the option to work would alleviate so much of the cost-of-living pressures they face today. These changes to the pension are imperative to ensure they can afford to access the health care they deserve, particularly as they grow older. I would like to reiterate that the government must ensure that both pensioners and businesses are informed of this new system, and they must be given the resources and assistance they need for a smooth transition to come off the pension.

It's great that the government is extending this scheme until December 2023, but it also should look to include JobSeeker recipients as part of this scheme. Fowler has the fifth-highest number of JobSeeker recipients in the country. A program like this could incentivise many to come off JobSeeker, to work a few days where they can earn some income and embed themselves in the local community and economy. In fact, 43 per cent of jobseekers are unable to work full time and have partial capacity to work due to disability or sickness, according to the Department of Social Services. However, some recipients are not eligible for the disability pension. These individuals should be given the option of entering the workforce for part-time or casual work to top up their family budget or put away savings for a rainy day, especially in these tough economic times.

I understand the reasons behind why the government is only holding out this program to a limited group. I understand that there is an immediate skills shortage that needs to be tackled. However, there is also a cost-of-living crisis that will go beyond the next 12 months. I hope that the government will consider extending the scheme indefinitely for specific sectors which face ongoing workforce shortages, including the health and disability sectors. In the care sector alone there are currently 74,000 job vacancies, according to the ABS. I know that in my electorate of Fowler aged-care facilities not only need workers but need workers who can assist our non-English speaking residents. With many bilingual pensioners who are ready and willing to work, it only makes sense that they should be given the opportunity to assist other elderly patients who struggle with English and would feel more comfortable dealing with a nurse who can speak their language. The government could do better for CALD communities, and allowing pensioners to work in this sector could alleviate the strain our healthcare system is currently under and also cater to the unique needs of my electorate.

I know this scheme is one small step towards keeping our economy going, but in my opinion the government needs to think bigger. I refer to a community member Brian Caw, who contacted my office imploring the government to allow seniors to work. He was concerned his superannuation could run out in his lifetime, leaving him without a sustainable income as he gets older. Brian believes that, if he were given the opportunity to work, it would not only allow him to afford the bare basics but also improve his quality of life by getting private health insurance or joining a gym. He says, 'Actively deterring potentially hundreds of thousands of people wanting to continue to contribute to the workforce is to the detriment of all.'

The Treasurer said time and time again that we need to cut corners to make up for the nearly $40 billion budget deficit that the previous government has left them. However, incentivising seniors to work is a ripe opportunity that would bring in a huge amount of revenue in income tax. In fact, a study by Deloitte shows that, if we only had an additional five per cent of Australians over the age of 55 back in the workforce, it would boost our economy by $48 billion. If we look towards countries like New Zealand, where pensioners are able to work freely as much as they want without impacting their pension, it would encourage participation in the workforce and improve our economic standing as well. Deloitte's economic modelling found a policy of an opt-in exemption from the income test would be cost neutral if only 8.3 per cent more pensioners re-entered the workforce or worked longer. Beyond this, it would be revenue positive. Pensioners in Fowler are suffering in this cost-of-living emergency. (Time expired)

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