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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.
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.
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.
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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Los jubilados australianos de bajos ingresos enfrentan hasta un 60% de tasas impositivas efectivas cuando trabajan, perdiendo miles de beneficios, lo que provocó llamados a la reforma para aumentar la participación de la fuerza laboral.