Wendy Askew (Tasmania, Liberal Party) Share this | Hansard source

I'm also pleased to make a contribution in relation to the Social Services and Other Legislation Amendment (Workforce Incentive) Bill 2022. As has been highlighted, the coalition government introduced a similar bill—with, in fact, a very similar name—in February this year aimed at incentivising older pensioners and veterans to undertake or increase their paid employment activities. I'm pleased to note that the government's bill adopts some of the measures proposed in our earlier bill. As a member of the Community Affairs Legislation Committee, I have taken particular notice and interest in this piece of legislation. It does encourage eligible recipients of the age pension, the disability support pension, the carer payment and some veteran entitlements to engage in paid work.

Before the election the coalition announced that a Dutton government would support older Australians who choose to work more, by doubling the amount of income eligible pensioners and veteran service pensioners can earn without reducing their pension payment. Essentially, pensioners would be able to increase the amount of money they earned fortnightly from $300 to $600 while still receiving their pension entitlement.

Under the coalition's earlier legislation, if a pensioner's income from employment exceeded the income limit, their age pension would be suspended for up to two years rather than be cancelled after 12 weeks. If during that two-year period the pensioner's income dropped to a level where they could return to the age pension, they could reapply for that entitlement via, as Senator Duniam mentioned, an abridged process by updating their income-and-asset information with Services Australia. Our bill also allowed for working age pensioners, disability support pensioners and some veteran entitlements recipients and their pension partners to retain their pension concession card for up to two years after their payment ceased.

My colleague Senator Dean Smith introduced a private senator's bill in August to bring the coalition's policy to fruition and help around 80,000 pensioners. In September, Senator Smith also moved a successful amendment to the Social Services and Other Legislation Amendment (Lifting the Income Limit for the Commonwealth Seniors Health Card) Bill, which incorporated many of these initiatives. However, the government later used its numbers to exclude that amendment. The bill also included extended qualification for pensioner concession cards and suspension of benefits and entitlements instead of cancellation, as per the bill introduced by the former government on 10 February.

In addition to having a similar name, much of the content within this bill is the same as the legislation introduced by the coalition earlier this year. The first two schedules in this government bill replicate the measures in the coalition's bill and in part of Senator Smith's bill. These measures could have been enacted months ago, so I don't think we need to keep pensioners waiting any longer for these changes to come into effect.

As it stands now, the bill we are debating today enables eligible pensioners and veterans to benefit from a maximum $7,800 increase to their work bonus concession balance, which can exempt future earnings from the pension income test. While the coalition welcomes a measure that allows pensioners to earn more, the measure is only temporary. Pensioners should receive support beyond the end of 2023. To this end, it would be great to see the work bonus increase from $300 to $600 per fortnight to be reviewed every 12 months rather than simply ending in December 2023.

Businesses in my home state of Tasmania and across Australia are right now facing industry-wide workforce and skills shortages which are impacting productivity and economic growth. We're also still recovering from the impact of COVID-19 on our economy and dealing with high inflationary pressure. Last year, the Australian Chamber of Commerce and Industry called on the government to encourage more pensioners back into the workforce by letting them earn without losing their benefits. The organisation backed this up again in June this year, asking the Labor government to consider this important issue at the much-publicised Jobs and Skills Summit in September. Indeed, 36 immediate actions were identified at that event for a bigger, better-trained and more productive workforce. How many have been implemented to date?

Following the summit, the ACCI made a submission to the inquiry of the Community Affairs Legislation Committee, highlighting that businesses are already working at full capacity and looking to secure more labour. The ACCI submission said:

There is now almost one job available for every person seeking work, with 470,900 job vacancies and 487,700 unemployed in August.

It went on to say:

Targeted and ongoing public effort has the capacity to increase workforce participation. With productivity growth over the past decade at 1.1 per cent per year, its slowest pace in 60 years, and the RSA downgrading GDP forecasts to 3¼ per cent over 2022, 1¾ per cent over 2023 and 1¾ per cent over 2024, there is a need to ensure maximum participation.

Yet we are still debating this topic today.

Labour shortages are one of the top issues facing Australian businesses right now. Quite simply, if businesses don't have access to enough workers, they can't run. Let's help our businesses stay open.

All sides of politics recognise this sticking point right now, and we have a good solution. I commend the government for endorsing coalition policy by adopting schedules 1 and 2 from our earlier bill. However, the solution this bill provides will be very short term, not nearly long enough for the pensioners to supplement the income they are watching diminish as they pay more for essentials in today's climate, and not long enough for Australian businesses to reap the benefit of this experienced and willing workforce. We're not suggesting that the work bonus increase becomes a permanent fixture within the legislation, but that's why an annual review would be excellent. That small change would make the world of difference.