Allowing retirees to joint the aged care workforce without pension penalty a win-win

The nation’s retirees should be able to return to work without losing pension and other retirements – and pay tax like everyone else - to help fx a critical workforce shortage in the aged care sector.

HammondCare CEO Mike Baird, a former NSW Premier, called for reforms to pension and superannuation rules to allow pensioners with limited wealth to go back to work in industries facing worker shortages, including aged care.

Mr Baird, who called for a change in a speech to the Aged and Community Care Providers Association (ACCPA) national conference, said it was time to make it easier for older people of pension age who want to work to do so.

“Given that the aged care sector is crying out for workers, while also facing an upcoming tsunami of demand, I believe it’s high time we make it easier for older workers to step back in from retirement,” Mr Baird said.

Reform to make it easier for retirees to work in the aged care sector was part of an “hourglass” solution for workplace shortages that aimed to get more younger workers, such as school leavers, into the sector as well.

“Even though one in fve retirees would consider re-entering the workforce – a valuable group of people with a lifetime of skills and experience – there are several barriers for them to negotiate,” he said.

“Apart from ageism and sometimes a need to upskill, especially digitally, the bigger ones are the pension and superannuation rules.”

Mr Baird said broadly speaking pensioners lose about 50 cents of their fortnightly pension for every dollar earned over