How pensioners could be the key to easing Australia’s job crisis

There are calls to ease the rule around pension eligibility in a move which could allow more than 400,000 over-65s to return to the workforce.

The idea, floated by business groups late last year amid chronic staff shortages, will be considered at this year’s national employment summit.

CEO of the Australian Industry Group, Innes Willox, says current pension work rules make it “very difficult for older Australians to continue to work”.

“There’s plenty of opportunities with about 425,000 unfilled jobs in the country at the moment, if we get it right around pension settings and work rules, to allow people to work for a bit longer,” he told Stephen Quartermain and Elise Elliott, filling in for Ross and Russel.

Opposition leader Peter Dutton has urged the Albanese government to double the amount pensioners can earn before their pension payments are reduced.

But Treasurer Jim Chalmers has warned doubling the amount of income pensioners can earn, without reducing their pension payments, comes with a hefty price tag.

Press PLAY below to hear the Australian Industry Group supports the idea