Possible Impacts of Reducing the Disincentive for Age Pensioners to Increase Paid Employment

Disclaimer: This study, while embodying the best efforts of the investigators is but an expression of the issues considered most relevant, and neither SACES, the investigators, nor the University of Adelaide can be held responsible for any consequences that ensue from the use of the information in this report. [...] Possible Impacts of Reducing the Disincentive for Age Pensioners to Increase Paid Employment 1 Possible Impacts of Reducing Disincentive for Age Pensioners to Increase Paid Employment Summary Australia is currently at full employment but the employment to population ratio of Aged Pensioners of around 4 per cent is well below that of the 32 per cent estimated for the average for those 65 years and. [...] Depending on the policy changes and the behavioral responses of Age Pensioners, the actual cash cost to the Federal Budget could be relatively low and under 1 per cent of the current budgeted cost for Age Pensions in 2022/23. [...] However, the 251,040 permanent and long-term departures in the six months to April represents an annual rate of around 98 per cent of the annual average number of departures (510,746) in the five years to December 2019. [...] (This would be the equivalent of about 4 per cent of the current part time workforce in Australia) Working on the assumption that under the current rules a single Age Pensioner can have personal and deemed income of up to $180 per fortnight and $300 of employment income without affecting the Age Pension, this additional employment income of $500 per fortnight on average would currently lead to a r.