This bill became law on Nov 23rd, 2022.
Welfare & housing
Working age pensioners and some veteran payment recipients can have their payment paused for up to 2 years instead of cancelled when work income pushes them over the income limit, making it easier to restart payments later.
Current rules left pensioners over age pensionThe main pension for older Australians, and this bill changes how it is paused when someone takes on enough work to affect payment. age facing payment cancellation and losing concessions after short periods of work income, discouraging them from taking jobs during labour shortages. The bill lets payments be paused instead of cancelled, extends concession card access, and temporarily increases the work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. so eligible pensioners can earn more before payments are cut.
Before this bill, pensioners who briefly earned too much from work could have payments cancelled and lose concession cards, creating a strong disincentive to take shifts even when they could return to payment later. As severe labour shortages and record job vacancies sharpened in 2022, the government introduced this bill to let eligible payments be paused instead, protect concession cards and temporarily lift the work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced., and Parliament passed it in November 2022 so those incentives could take effect.
The main criticism was that the bill was too small and too temporary, so it would not give pensioners or employers enough certainty and should have offered a larger, ongoing work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. instead of a short-term increase. That case was raised by the Coalition, some crossbenchers and the Greens, but it remained a qualified criticism because no party represented in the debate opposed the bill itself.
Hon Amanda Rishworth MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 23 Nov 2022
Final passage
Passed without a counted vote
3 recorded amendment or procedural votes were found, but no counted vote on the bill itself was recorded.
Passage speed
56 days
From introduction to the latest recorded parliamentary step
Meaning
Working age pensioners and some veteran payment recipients can have their payment paused for up to 2 years instead of cancelled when work income pushes them over the income limit, making it easier to restart payments later.
Partners on age pensionThe main pension for older Australians, and this bill changes how it is paused when someone takes on enough work to affect payment., disability support pensionAn income support payment for people with a disability, and the bill extends some of the same pause and partner protections to it., carer paymentIncome support for people who provide substantial care, and the bill covers some partners on this payment when a couple's pension is affected. or some veterans payments can also have their own payment paused instead of cancelled if the same work-related income change cuts off the couple’s pension.
Working age pensioners, disability support pensioners, some veterans payment recipients and their pensioner partners can keep their Pensioner Concession CardA card that gives pensioners cheaper access to things like medicines, public transport or council services, and this bill helps some people keep it after their payment stops. for up to 2 years after payments stop.
The bill temporarily gives eligible older pensioners an extra $4,000 work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. balance and lifts the maximum balance, so they can earn more from work before their pension is reduced.
The Bill will allow age pensioners and certain veterans’ entitlement recipients to have their payment suspended for up to two years, instead of cancelled, if their income, which includes some income from the recipient’s own employment, precludes payment. Suspension will also be made available to their partners, and partners of disability support pension recipients, where the partner is themselves receiving a social security pension or certain veterans’ entitlement. This will enable pensioners and their partners to resume receiving pension more easily if it becomes payable again within two years.Social Services and Other Legislation Amendment (Workforce Incentive) explanatory memorandum
Item 17 inserts new section 97C into the Social Security Administration Act, to provide for the suspension (instead of cancellation) of age pension, disability support pension and carer payment received by the partner of an age pension, disability support pension or veterans’ entitlement recipient in certain circumstances. To be eligible for suspension, the partner does not need to have employment income, as that requirement will have been satisfied by the age pension, disability support pension or veterans’ entitlement recipient. This provision provides reassurance for age pension, disability support pension and veterans’ entitlement recipients who take up work, or increase their hours of work, that their partner may be able to get back on their pension more easily if circumstances change.Social Services and Other Legislation Amendment (Workforce Incentive) explanatory memorandum
The Bill will remove a potential disincentive to working by extending the period that age pension, disability support pension and certain veterans’ entitlement recipients can remain qualified for a pensioner concession card. This Bill will allow working pensioners, and their pensioner partners, to retain their pensioner concession card for up to two years.Social Services and Other Legislation Amendment (Workforce Incentive) explanatory memorandum
The amendments made by this Schedule will not affect the existing application of the $300 fortnightly income concession. Instead, this Schedule will provide an additional $4,000 to the unused concession balance of all eligible pensioners, and increase the maximum available unused concession balance from $7,800 to $11,800, until 30 June 2023. This means that each eligible pensioner will be able to have an extra $4,000 of income from work immediately disregarded from the income test, rather than having to accumulate a balance over time. Further, eligible pensioners will temporarily be able to accrue a higher concession balance of up to $11,800. These amendments will support pensioners who wish to re-enter the workforce or increase their work hours, as they will enable pensioners to earn more before the pension income test is applied.Social Services and Other Legislation Amendment (Workforce Incentive) explanatory memorandum
Context
Before this bill, pensioners who briefly earned too much from work could have payments cancelled and lose concession cards, creating a strong disincentive to take shifts even when they could return to payment later. As severe labour shortages and record job vacancies sharpened in 2022, the government introduced this bill to let eligible payments be paused instead, protect concession cards and temporarily lift the work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced., and Parliament passed it in November 2022 so those incentives could take effect.
Labour shortages and job vacancies sharpen pressure to lift workforce participation
The minister said widespread skill and labour shortages were constraining productivity and growth, creating pressure to remove barriers stopping older Australians from taking work.
Hansard ↗Government introduces the bill to remove pension work disincentives
The bill was introduced to let eligible pension payments be paused rather than cancelled and to temporarily increase the work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. so pensioners could earn more from work before losing payment.
Parliamentary timeline ↗House debate links the bill to severe workforce shortages
Speakers backed the bill as a response to severe nationwide staff shortages and barriers that discouraged pensioners from working extra hours or re-entering the workforce.
Hansard ↗House passes the bill
The House agreed to government amendments and passed the bill, sending the workforce incentive changes to the Senate.
Parliamentary timeline ↗Parliament passes the bill
After Senate debate and committee consideration, both houses passed the bill in the same form, completing its parliamentary passage.
Parliamentary timeline ↗Royal AssentThe final step that turns a passed bill into an Act of Parliament and lets the new rules start. makes the workforce incentive changes law
Royal AssentThe final step that turns a passed bill into an Act of Parliament and lets the new rules start. turned the bill into an Act, clearing the way for the new pension pause, concession card protection and temporary work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. changes to operate.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Referred to Committee (28/09/2022): Senate Community Affairs Legislation Committee; Committee report (10/11/2022)
Referred to committee
APH bill page notesThe bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber considered amendments before the bill moved to the next stage.
Consideration in detail debate
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final step that turns a passed bill into an Act of Parliament and lets the new rules start., turning the bill into an Act.
Key criticism
The main criticism was that the bill was too small and too temporary, so it would not give pensioners or employers enough certainty and should have offered a larger, ongoing work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. instead of a short-term increase. That case was raised by the Coalition, some crossbenchers and the Greens, but it remained a qualified criticism because no party represented in the debate opposed the bill itself.
Criticism focused on scope and duration, not on rejecting the bill’s basic approach.
Too temporary and limited
The strongest reservation was that the higher work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. was only a short-term measure and did not go far enough. Critics argued pensioners and employers needed a larger or ongoing increase, or at least regular review, so people could make work decisions with more certainty.
Help should have been broader
Some speakers said the bill was too narrow because it mainly helped age pensioners and did not extend comparable relief far enough across other income-support recipients. The Greens in particular argued broader welfare payments still remained too low and that more groups should be able to earn more without losing support.
Further sources
Votes
The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.
House
The APH progress record says 2 Government amendments were agreed without a counted division being collected by this run.
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
Senate
Defeated 12 to 28. Support came from Greens. Opposition came from Labor, Liberal Party, Jacqui Lambie Network, Nationals, and minor parties and independents.
If agreed, the work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. would have reached more income-support recipients. Its defeat left the bill focused on pensioners and equivalent veteran payment recipients.
Defeated 13 to 26. Support came from Greens and minor parties and independents. Opposition came from Labor, Liberal Party, Jacqui Lambie Network, Nationals, and minor parties and independents.
This would have held back the bill's later welfare changes for a month after Royal AssentThe final step that turns a passed bill into an Act of Parliament and lets the new rules start.; the Senate defeated the amendment, so those changes were left to commence as enacted.
Defeated 29 to 34. Support came from Liberal Party, Nationals, Jacqui Lambie Network, and One Nation. Opposition came from Labor, Greens, and minor parties and independents. Minor-party and independent votes were split.
If agreed, the amendment would have increased how much working pensioners could earn before their payment was affected; the Senate defeated it, so the government's work-bonus changes remained unchanged.
This proposal would have made schedules 4 to 7 start one month after Royal AssentThe final step that turns a passed bill into an Act of Parliament and lets the new rules start. and updated related income testThe means test that checks how much a person earns and decides whether their payment is reduced or stops. and work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. notes; the Senate rejected it on voices.
Defeated on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
This proposal would have made schedules 4 to 7 start one month after Royal AssentThe final step that turns a passed bill into an Act of Parliament and lets the new rules start. and updated related income testThe means test that checks how much a person earns and decides whether their payment is reduced or stops. and work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. notes; the Senate rejected it on voices.
Defeated on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.
The parliamentary record also shows 2 Government amendments agreed without a counted division.
Parliamentary debate
Start here — lead voices
Rishworth supports the bill, saying it will help older Australians and some veterans stay in or return to work by expanding the Work BonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. and making pension payments easier to suspend and resume.
Read in Hansard ↗Sukkar says the opposition will support the bill because it lifts incentives for pensioners and veterans to work, but he criticises the government for acting late and for making the work bonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. increase only temporary.
Read in Hansard ↗Dai Le supports the bill as a step in the right direction, but argues it is only a small, short-term fix that does not go far enough to help pensioners and disability support recipients stay in work.
Read in Hansard ↗McBride supports the bill and says it will help older Australians work more hours without losing pension support, while also easing paperwork and protecting concession cards.
Read in Hansard ↗All speeches by bloc
5 speakers · 6 contributions · 5 support
“Through the measures in this bill, we will support those pensioners who still wish to participate in paid work to do so. I commend the bill to the House.”Read the full speech in Hansard ↗
“The bill before us today works to support—and to better support—those seniors who do want to work. It gives them greater capacity to work and also expands the workforce at a time of labour shortages, and we know how vital it is to do that. We have listened to our older Australians. We always have. We've always fought for them and, since being in government, we have continued to deliver. These workforce incentives are the latest measure that we are absolutely committed to delivering. If pensioners do want to work more they can, and their pension will not be impacted.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Amanda Rishworth on this bill. They are grouped here so the speaker is listed once.
Minister's second reading speech
Rishworth supports the bill, saying it will help older Australians and some veterans stay in or return to work by expanding the Work BonusA rule that lets eligible pensioners earn some money from work before their pension is reduced. and making pension payments easier to suspend and resume. She presents it as a practical response to labour shortages and a way to give pensioners more flexibility without losing their concession cards.
“This bill delivers on one of the key outcomes of the Jobs and Skills Summit. From commencement until 30 June 2023, age pensioners, disability support pensioners and carer payment recipients over the age-of-pension age, as well as certain veteran entitlement recipients over qualifying age will have $4,000 credited to their Work Bonus income bank for use during this financial year.”Read this contribution in Hansard ↗
Second reading speech
Rishworth says the government supports the bill because it is a practical, time-limited way to help older Australians work more and respond to labour shortages. She also says the government will reject the opposition and Greens amendments because they do not fit the policy.
“This is really a sensible proposal, because, of course, at present, only around three per cent of age pensioners earn income from employment, but by providing this incentive and by increasing opportunities to work—even this most marginal increase—a number of older Australians will benefit.”Read this contribution in Hansard ↗
“I think with this measure, which came out of the Jobs and Skills Summit, the government is meeting the commitments it has made. We're hoping that, for pensioners who want to take up this opportunity, this bill will support them more readily to do so and will make the difference in terms of when they go over the incentive limits—that the bill actually shapes that so that it's less punitive for people and works in a way such that they might re-engage with the age pension if they get beyond the income point where they lose the pension. So, thought has been put into ensuring that this bill allows people on the age pension to re-engage in the workforce or to continue to work, to take up hours in the workforce and not be punished financially, through their pension. It's a bill that's thoughtful. It's a bill that allows the best of both worlds.”Read the full speech in Hansard ↗
“The benefits of this measure also extend to partners of age pensioners, disability support pensioners and equivalent veteran payments recipients, as long as the partner is also receiving a pension. These measures will strengthen the incentives for older Australians to work and, like a series of the speakers in this debate, I hope the Senate supports the legislation quickly.”Read the full speech in Hansard ↗
7 speakers · 7 support
“So, we will of course be supporting the bill, save for the amendment I've already announced, because these are measures that were introduced by the former government and indeed encouraged by us in opposition to get the government moving.”Read the full speech in Hansard ↗
“I rise to make a contribution on the Social Services and Other Legislation Amendment (Workforce Incentive) Bill 2022 and indicate the coalition's position in relation to this bill, which is that we will be supporting the bill. But we're also intending to move an amendment to increase the fortnightly work bonus from $300 to $600 a fortnight from 1 January 2024, which is, of course, when the government's temporary work bonus concession balance measure comes to an end.”Read the full speech in Hansard ↗
“The second reading amendment makes the point about going from $300 to $600 a fortnight and not bringing these measures to a close at 30 June 2023 but instead extending the ability for pensioners to keep earning that higher rate, which is being ever eroded anyway by inflation. By increasing the cap from $300 to $600 when inflation is at 7.3 per cent and possibly going to eight per cent or higher, we see , frankly, that pensioners need this support. They need this option and they need the certainty of it extending well beyond 30 June. I commend this second reading amendment to the chamber. As I say, we support the three schedules to this bill, but we wish that schedule 3 would go further.”Read the full speech in Hansard ↗
“Now, whilst we will support this bill, with amendments, it demonstrates two things. Firstly, it demonstrates that this Labor government does not have a real plan to address the cost-of-living pressures faced by Australian families and their businesses.”Read the full speech in Hansard ↗
“I will support it, even if the government won't support the amendment, because we need to get on with it. We need to give some sort of certainty to those pensioners and veterans out there that they can actually earn some more money, most importantly, to combat these rapidly increasing costs in life.”Read the full speech in Hansard ↗
“I commend this bill to the House, although I do recommend that the government now keep an eye on this and extends it forever. It's a step in the right direction, and when the Treasury realises how much extra growth in the economy we get because we have people working again, it may take our advice and extend it up to the full tax-free threshold, rather than this artificial low level that it's stuck at now.”Read the full speech in Hansard ↗
“All sides of politics recognise this sticking point right now, and we have a good solution. I commend the government for endorsing coalition policy by adopting schedules 1 and 2 from our earlier bill. However, the solution this bill provides will be very short term, not nearly long enough for the pensioners to supplement the income they are watching diminish as they pay more for essentials in today's climate, and not long enough for Australian businesses to reap the benefit of this experienced and willing workforce. We're not suggesting that the work bonus increase becomes a permanent fixture within the legislation, but that's why an annual review would be excellent. That small change would make the world of difference.”Read the full speech in Hansard ↗
3 speakers · 3 support
“This bill is giving age pensioners an $11,800 work bonus. They are going to be able to earn that amount before their payments start to be reduced—again, we welcome that; we're supporting this bill—but, unlike those pensioners, the jobseeker we're talking about has a work credit of only $1,000 before they start to have their payments reduced.”Read the full speech in Hansard ↗
“So yes, we will be supporting this bill, because it makes it easier for people to access income support, and we welcome the Labor Party's commitment to taking the small step to support age pensioners.”Read the full speech in Hansard ↗
“I rise to speak on the Social Services and Other Legislation Amendment (Workforce Incentive) Bill 2022. The changes made by this bill are welcome, and I want to echo the comments made by my colleague Senator Rice. It makes sense that older Australians who want to work more should not be penalised for doing so. I acknowledge that many of my colleagues have already spoken to the benefits of this bill succinctly, so, while I wish to speak to this bill, I want to highlight further amendments that we should be considering.”Read the full speech in Hansard ↗
1 speaker · 1 support
“One Nation completely supports this legislation and looks forward to its passage, apart from the fact that the government are stipulating it's only until 30 June 2023.”Read the full speech in Hansard ↗
3 speakers · 3 support
“I acknowledge the government's proposal to incentivise pensioners and disability support pension recipients to stay in the workforce in light of these recent workforce shortages. I think this is a step in the right direction. However, I think what this bill does is a drop in the ocean compared to what the government should be doing to get pensioners back into the workforce.”Read the full speech in Hansard ↗
“I rise to speak in support of the Social Services and Other Legislation Amendment (Workforce Incentive) Bill 2022. According to the Department of Social Services only three per cent of pensioners receive income from employment. According to recent reports employers are struggling to fill about 480,000 jobs. Pensioners represent an eminently qualified pool of worker that we could better utilise. Traditionally, pensioners have been rightly cautious about taking up work for fear of how it will impact their pensions. Understandably, not everyone wants to go to the hassle of liaising with Services Australia and risking their pension just to work for a few hours here and there or to work for a couple of weeks over the holidays.”Read the full speech in Hansard ↗
“This bill will give those pensioners who want to work the opportunity to do so without unfair financial penalty. This is so good for regional Australia.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Consideration in detail: amendments considered
Amendment packages agreed
The chamber considered amendments before the bill moved to the next stage.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Committee of the Whole debate
Committee of the Whole debate
The bill reached this recorded parliamentary step.
Senate · Committee of the Whole debate
Committee of the Whole debate
The bill reached this recorded parliamentary step.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turns a passed bill into an Act of Parliament and lets the new rules start., turning the bill into an Act.
Senate Community Affairs Legislation Committee; Committee report (10/11/2022)
Referred to committee
Referred to Committee (28 Sept 2022): Senate Community Affairs Legislation Committee; Committee report (10 Nov 2022)
APH bill page notes
