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flag Low-income Australian retirees face up to 60% effective tax rates when working, losing thousands in benefits, prompting calls for reform to boost workforce participation.

flag Australia's pension system imposes steep effective tax rates—up to 60%—on low-income retirees who return to work, costing a $45,000 earner over $26,000 annually in lost benefits and taxes, while wealthier retirees face no such penalties. flag National Seniors Australia urges reform to exempt work income from pension assessments, aiming to boost workforce participation, ease labor shortages in health and aged care, and promote dignity in retirement. flag Though such changes may reduce government pension spending on paper, long-term economic and social benefits are seen as outweighing the costs.

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