This bill did not become law and is no longer proceeding.
Defence & foreign affairs
Age pensioners, some veterans, and some pensioner partners would have their payments paused for up to two years instead of cancelled when work income pushes them over the limit, making it easier to restart payments later.
COVID-19, inflation and labour shortages exposed rules that discouraged pensioners and some veterans from taking paid work or made returning to pension payments harder. The bill lets them earn more before losing pension, keeps concession cards for longer, and pauses payments instead of cancelling them so work is easier to take up.
Before this bill, pension and concession card rules could cut off support or make it hard to restart payments when older Australians and some veterans took on extra paid work. As COVID-19 disruption, inflation and acute labour shortages tightened the job market in 2022, the bill was introduced to remove those disincentives, the Jobs and Skills Summit then pushed similar temporary work-bonus changes onto the government agenda, and the bill itself later lapsed without becoming law.
The main criticism was that the bill was too limited: it slightly eased work rules for some pensioners and veterans but did not tackle the deeper problem of inadequate income support. That argument was raised most clearly by the Greens, while no party represented in the debate opposed the bill itself and broader criticism stayed narrow rather than widespread.
Senator Dean Smith introduced this bill. Speeches supporting it came from Liberal Party, Labor, Greens.
Did it become law?
No
The bill did not complete passage through Parliament.
Final passage
No final passage
The bill has not completed passage and is no longer proceeding.
Time before failure
1083 days
From introduction to the final recorded step before the bill stopped proceeding
Meaning
Age pensioners, some veterans, and some pensioner partners would have their payments paused for up to two years instead of cancelled when work income pushes them over the limit, making it easier to restart payments later.
Working age pensioners, disability support pensioners, some veterans, and their pensioner partners would be able to keep their Pensioner Concession CardA card that gives pensioners cheaper access to things like medicines and transport concessions; the bill would let some people keep it for up to two years after their payment stops. for up to two years after payments stop.
Age pensioners and veterans on service pensions would be able to earn up to $600 a fortnight without losing their maximum pension, while still building up unused work bonusA rule that lets age and veteran pensioners earn some work income before their pension is reduced; the bill would temporarily lift the amount they can earn each fortnight. credits to help cover later earnings.
The higher work bonusA rule that lets age and veteran pensioners earn some work income before their pension is reduced; the bill would temporarily lift the amount they can earn each fortnight. would be temporary unless reviewed and renewed, because it would lapse after 12 months unless the minister extends it again each year.
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 Legislation Amendment (Enhancing Pensioner and Veteran Workforce Participation) explanatory memorandum
This Schedule will provide that working age pensioners, disability support pensioners and certain veterans’ entitlement recipients, and their pensioner partners, can retain their pensioner concession card for up to two years after their payment ceases.Social Services Legislation Amendment (Enhancing Pensioner and Veteran Workforce Participation) explanatory memorandum
The new provisions will enable pensioner and relevant veteran entitlement recipients to earn up to $600 a fortnight and still receive the maximum pension payment. Pensioners will continue to accrue unused concession balance up to a maximum of $7,800 which can exempt future earnings from the pension income test.Social Services Legislation Amendment (Enhancing Pensioner and Veteran Workforce Participation) explanatory memorandum
Subclause 4(4) outlines the timeframe of the sunset clauses for the amendments made under Schedule 3 to this Act. The amendments will cease after a 12 month period has elapsed if the Minister has not renewed the amendments under subclause 4(5) following the review period. The operation of the amendments must be extended every 12 months or they will cease to be in force.Social Services Legislation Amendment (Enhancing Pensioner and Veteran Workforce Participation) explanatory memorandum
Context
Before this bill, pension and concession card rules could cut off support or make it hard to restart payments when older Australians and some veterans took on extra paid work. As COVID-19 disruption, inflation and acute labour shortages tightened the job market in 2022, the bill was introduced to remove those disincentives, the Jobs and Skills Summit then pushed similar temporary work-bonus changes onto the government agenda, and the bill itself later lapsed without becoming law.
Bill introduced as labour shortages and inflation strain the economy
The second reading speech said post-COVID labour shortages, rising living costs and existing pension rules were discouraging older Australians and veterans from taking paid work.
Hansard ↗NSW Treasurer calls for pensioner work disincentives to be eased
AFR reported NSW Treasurer Matt Kean’s argument that seniors and pensioners could fill vacancies in home care, hospitality and agriculture if federal rules removed financial penalties for working.
Australian Financial Review ↗Jobs and Skills Summit backs temporary pension work-bonus relief
After the summit, the government announced a temporary $4,000 income credit for age and veterans pensioners, lifting the amount they could earn in that financial year before payments were affected.
Australian Financial Review ↗Senate debate ties the bill to the jobs summit push
During second reading debate, supporters argued the bill offered an immediate way to ease labour shortages by letting pensioners and veterans work more without losing support as quickly.
Hansard ↗Employment white paper includes Work BonusA rule that lets age and veteran pensioners earn some work income before their pension is reduced; the bill would temporarily lift the amount they can earn each fortnight. follow-through
AFR reported that, when releasing the employment white paper, Treasurer Jim Chalmers said the government would nail down age pensionThe main pension for older Australians; on this page, the bill would let some recipients keep it paused rather than cancelled when paid work pushes their income too high. Work BonusA rule that lets age and veteran pensioners earn some work income before their pension is reduced; the bill would temporarily lift the amount they can earn each fortnight. changes announced after the 2022 jobs summit.
Australian Financial Review ↗Bill lapses at the end of Parliament
The parliamentary record shows the bill did not pass and fell away when Parliament ended.
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 (04/08/2022): Senate Community Affairs Legislation Committee; Committee report (30/09/2022)
Referred to committee
APH bill page notesThe bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Key criticism
The main criticism was that the bill was too limited: it slightly eased work rules for some pensioners and veterans but did not tackle the deeper problem of inadequate income support. That argument was raised most clearly by the Greens, while no party represented in the debate opposed the bill itself and broader criticism stayed narrow rather than widespread.
No significant broader public case against the bill is recorded so far.
Too narrow to address pension poverty
Critics argued the bill only makes modest changes to work incentives and concession-card rules, without lifting base payments enough to address poverty or financial stress for people on pensions. The concern was about the bill's limited scope rather than its basic direction.
Further sources
Votes
No recorded votes were found before this bill stopped proceeding.
Parliamentary debate
Start here — lead voices
Dean Smith supports the bill, saying it will make it easier for pensioners and veterans to work by raising the work bonusA rule that lets age and veteran pensioners earn some work income before their pension is reduced; the bill would temporarily lift the amount they can earn each fortnight. and removing barriers that discourage returning to work.
Read in Hansard ↗Ayres supports the bill and says it will immediately lift the work bonusA rule that lets age and veteran pensioners earn some work income before their pension is reduced; the bill would temporarily lift the amount they can earn each fortnight. income bank to help pensioners and some veterans earn more without losing pension income.
Read in Hansard ↗Hollie Hughes supports the bill and says the opposition will back it because it lets pensioners and disability support pensioners work more hours without losing pension benefits, which she says will help fill workforce shortages and ease cost-of-living pressure.
Read in Hansard ↗Rice supports the bill because it gives pensioners some scope to earn more and keep concession cards for longer, but says it falls far short of what is needed because the Greens want a much broader lift in income support above the poverty line.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“It's a significant reform. Age pensioners who are currently working and have already benefited from the full value of the concession will have their income bank topped up by $4,000. A pensioner who is working and has used some of their income bank will also receive the $4,000 top-up. The maximum income bank limit will return to $7,800 at the end of this financial year. By providing an immediate top up of $4,000, rather than allowing it to accrue over time as currently happens, this measure will provide an immediate benefit to any pensioner who starts work or works additional hours and is going to help address pressing labour shortages in a practical and immediate way.”Read the full speech in Hansard ↗
3 speakers · 4 contributions · 3 support
Hansard records 2 separate contributions by Dean Smith on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Dean Smith supports the bill, saying it will make it easier for pensioners and veterans to work by raising the work bonusA rule that lets age and veteran pensioners earn some work income before their pension is reduced; the bill would temporarily lift the amount they can earn each fortnight. and removing barriers that discourage returning to work. He argues it will help household finances and the wider economy.
“The bill is good for our pensioners, it is good for our economy, and it is good for Australia.”Read this contribution in Hansard ↗
Second reading speech
Dean Smith supports the bill and urges Labor to pass it quickly because it would improve the work bonusA rule that lets age and veteran pensioners earn some work income before their pension is reduced; the bill would temporarily lift the amount they can earn each fortnight. for age pensioners and veterans, ease cost-of-living pressure, and help businesses facing labour shortages. He also argues the measure should be legislated now rather than left for a later government plan that he says is less generous and temporary.
“This is an economic measure that deserves support now because small businesses are being hurt now. Age pensioners and veterans are experiencing real cost-of-living pressures now. Here is a bill. We have eight parliamentary sitting days before the federal budget.”Read this contribution in Hansard ↗
“So I commend Senator Dean Smith's bill. We will continue to support it and make sure that these sorts of solutions—practical solutions—can be enacted quickly to make a real difference to help everyday Australian families, whether by putting more money in their pockets or by helping to ease the workplace shortages, and to make sure that we are supporting everyday Australians.”Read the full speech in Hansard ↗
“As a senator for Western Australia, I do welcome and support this bill, which will improve the livelihoods not only of thousands of Australians, but thousands of Western Australian pensioners and veterans. This bill does contrast sharply with the government's long overdue announcement on an age and veterans pension income credit, and again I note that it took Senator Ayres probably 10 minutes of rewriting the history of the previous government before he was able to very lightly touch on the benefits, as he saw it, of Labor's emperor-with-no-clothes policy. I will explain why it is so deficient. As Senator Smith said, at best it is a very lukewarm response. It is a substandard measure and a very temporary measure, unlike the measures contained in this bill which are permanent for older Australians and for veterans. Sadly, this is yet another classic ALP response, one that is clearly influenced by the dead hand of the trade union movement, who are very fast becoming the de facto government of this nation. Not only is the Labor announcement too little too late for many Australians, but, as I have said, it is a very poor attempt to copy our policy that we announced in June of this year.”Read the full speech in Hansard ↗
1 speaker · 1 support
“Senator Smith's bill has some measures that will make life easier for age pensioners, but there is so much more that needs to be done. And there's a simple answer here: we can make a different choice. We can choose to increase the rate of income support so that payment rates are above the poverty line. We can choose to care for people rather than profit. We can choose people over corporations. The Greens believe that no-one in Australia should be living in poverty, and we will keep fighting for that change.”Read the full speech in Hansard ↗
Record
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 · Lapsed at end of Parliament
Lapsed at end of Parliament
The bill reached this recorded parliamentary step.
Senate Community Affairs Legislation Committee; Committee report (30/09/2022)
Referred to committee
Referred to Committee (4 Aug 2022): Senate Community Affairs Legislation Committee; Committee report (30 Sept 2022)
APH bill page notes
