Manual labourers could become eligible for the age pension two years early, under a change to the Labor Party’s national policy platform. Australia lifted the pension age from 65 to 67 in 2023, but some manual workers have said they are physically struggling to keep working until retirement age.
Along with backing compulsory superannuation for workers under the age of 18, Labor’s policy platform was amended to examine the impact of the pension age for manual workers. The pension age began gradually rising from 65 to 67 back in 2017 under a change by the former Rudd government.
A clause in the platform noted this change had created challenges for long-term manual workers, including warehouse workers, tradies and nurses.
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“Labor acknowledges that increases in age pension eligibility impose challenges on long-term manual workers, whose physical capacity to undertake work may diminish over their working life,” the platform now says.
“Labor will evaluate the impacts of age pension eligibility on long-term manual workers and seek to improve alternative work opportunities to better ensure dignified pathways to retirement.”
The policy shift is not yet law, but rather a formal platform commitment by the Labor party. Final policy decisions will ultimately be up to the government.
The pension age is currently set at 67 and does not consider factors such as employment type, occupational history or other health factors.
Super for under 18s, data sharing with Centrelink backed
On the first day of Labor’s national conference in Adelaide, the policy platform was also amended to support paying superannuation to employees under 18 regardless of hours worked.
Currently, workers under 18 are only required to be paid super if they work more than 30 hours a week for the same employer.
The platform now specifies that “all workers including those under 18 and regardless of how they are engaged, can accumulate superannuation on every dollar earned”.
The move comes less than a month after the Labor government voted down a Greens motion that would have pushed through the change as part of payday super laws.
Labor’s policy platform was also amended to examine data sharing between Centrelink and super funds, as proposed by former prime minister Paul Keating. · Source: Getty
Rest has backed the move, with the super fund’s analysis finding a typical 15-year-old member could benefit from $3,400 extra in super by their 18th birthday and an estimated $18,100 by retirement if the rule was changed.
“Right now, a 15-year-old and an 18-year-old could work side by side in the same job, but only one of them would be entitled to compulsory super. In fact, most under-18 workers currently miss out on compulsory super contributions,” Rest chief member officer Simone Van Veen said.
“This doesn’t make sense and needs to change.”
The Labor party also adopted a motion from CareSuper chair Linda Scott to examine data sharing between Centrelink and super funds.
The move was proposed by former prime minister Paul Keating last week, who said it could help boost uptake of age pension benefits and lead to better retirement outcomes.
“Labor will explore opportunities for secure, targeted information and data sharing between government agencies and the superannuation sector, so retirees can access more accurate, timely and personalised retirement advice,” Scott’s motion read.
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