Chief Advocate Ian Henschke.
Aged care homes are closing as they struggle to meet new standards. From 1st July they need a registered nurse 24/7 and more workers to give more care minutes per resident.
National Seniors has put forward a solution in its budget submission to help retain and attract staff.
Chief Advocate Ian Henschke said that pensioners are discouraged from staying in the work force, working more, or returning to work because they lose 50c in the dollar on income earned above the $11,800 work bonus limit.
“Our research shows almost 20% of pensioners are considering returning to work but under current rules after about one day’s work they’re losing 50c in the dollar from their pension, reporting to Centrelink and paying tax on top,” Mr Henschke said.
“Many older workers walk away because it’s too complicated trying to understand what you can earn before your pension takes a hit. We propose care sector workers be exempt from the harsh pension income test. Then you can work as much as you want and simply pay tax.”
The skills and labour shortage casts a shadow over more than aged care. It’s a growing problem in health care, disability care, and childcare. All are desperate for workers. A year ago there were 60,200 vacancies across the wider care sector. The latest ABS figures show this has blown out to 72,400.