“By removing some of the barriers for pensioners who want to work we can make a real difference in their lives and also help businesses struggling to find staff,” ACCI chief executive Andrew McKellar said.

“A substantial increase of over 50 per cent in the work bonus will enable pensioners to make a meaningful contribution to the workforce. With greater flexibility, pensions can choose short term or seasonal work, or take up extra hours each week. “

Last year, ACCI and its state chamber network spearheaded a campaign that called on the government to encourage more pensioners back into the workforce by allowing them to earn more income without losing benefits.

“We must not overlook the vast pool of talent that is heading for the exits in droves. More than 400 Baby Boomers are retiring every single day,” Mr McKellar added.

“The experience and expertise of older Australians should not be ignored. Changes to aged pension income settings announced today will provide greater flexibility and encourage more older Australians to re-enter the workforce.

“Indeed, businesses of every size, in every industry, and in every corner of the country, are experiencing the worst skill and labour shortages in almost 50 years. Without access to skilled workers, including older Australians, businesses cannot compete in the global economy.