A lot of Australians face grim reality on the day that they retire. The superannuation they amassed during a lifetime of work will not support them for the years they expect to live, but it is too much for them to gain the aged pension. They find themselves in that weird category of being a " part pensioner ".
Pensions are a big item on Treasury expenditure and the government must protect its bottom line by imposing strict rules and these apply equally to both full and part pensioners. They must report even the smallest change in their financial position to Centrelink and failing to do so is a crime that may result in punishment in court.
That presents a problem for pensioners who enjoy good health and would like to find a small part time job to improve their standard of life in retirement. The pension rules reduce the pension, often on the basis of fifty cents for each dollar that the pensioner earns. That delivers a big incentive for the pensioner to seek what is known as " cash in hand " work.
The pension rules in Australia are less favourable that those in other Commonwealth countries. In New Zealand both full and part pensioners can earn freely without it affecting their pension and in Canada they can earl up to $88,500.annually. In Australia, that 50 cents in the dollar pension cut starts when they earn above $175 a fortnight.
Obviously the Australian government sees all types of pensions as a form of " welfare " and is moving towards a stricter code of compliance. W are about to start testing recipients of New Start and the Youth Allowance for the presence of illegal drugs in their system. Just what happens to those who test positive is unclear.
New Start is just another name for the " dole " and it offers little more than subsistence money for those seeking employment. Advocates for an increase of $95 a week claim it is impossible for applicants to pay the travel costs to go for job interviews and present neatly dressed with a reasonable haircut on the present level of the dole.
A long time ago many groups of young men specifically chose to live in beach resorts where any type of work was not offering. Their interest was surfing and the dole covered communal living and they chose to extoll this lifestyle in the media. It outrages the public and they were classed as " dole bludgers ". It was a positive disincentive for any increase in the dole.
It seems that our pension system is out of step with the rest of the world and a more relaxed attitude to pensioners earning a little to improve their lifestyle would be welcome. When it comes to the dole we need to face reality. The job market is changing and there are now many people who will never find a paying job. Perhaps a need for a new welfare category. One that pays less than the aged pension but more than New Start to allow the permanently unemployed to survive.
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