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flag Australia proposes exempting work income from pension tests to boost retiree employment and fairness.

flag A proposed change to Australia’s age pension system would exempt employment income from the income test, addressing a system that imposes effective tax rates of up to 60% on low-income retirees while allowing wealthier retirees to earn significantly more without losing benefits. flag Critics say the current structure discourages older Australians from working, worsens labor shortages, and entrenches inequality. flag Advocacy groups argue that removing work income from the test would simplify the system, promote fairness, and encourage workforce participation. flag The Department of Social Services maintains the current approach is fair and designed to promote self-reliance, but many view it as outdated and unjust.

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