Liberal Party backbenchers are pushing Treasurer JoshFrydenberg to use next week’s budget to unleash a “grey army” of retired workers to boost the nation’s stretched employment market. greyarmy liberal auspol budget2022
Liberal Party backbenchers are pushing Treasurer Josh Frydenberg to use next week’s budget to unleash a “grey army” of retired workers to boost the nation’s stretched employment market, calling for an end to an effective tax rate of more than 60 per cent on their incomes.and even mining billionaire Gina Rinehart, several backbench members are pressing for Mr Frydenberg to trial a system under which people on the age pension could work without their entitlement being reduced.
But a group of Coalition MPs believes the government should tap the large number of retirees already in the country who face severe financial penalties even if they work one or two extra days a fortnight.Under current rules, a single person can earn up to $480 a fortnight without affecting their pension entitlement. Beyond $480, the pension is reduced at 50¢ for every dollar in income or an effective marginal tax rate of 50 per cent.
The issue has gone to members of the expenditure review committee, where there has been push-back against the policy although there has yet to be any formal costing. “Current tax arrangements are a huge disincentive to older Australians who choose to work extra hours and benefit from the financial and social opportunities work presents,” they said. “Small businesses are seeking immediate solutions to day-to-day economic challenges and this would provide welcome relief to business owners across Australia.”