When the government stops you working

In Australia, pensioners are only permitted to earn up to $190 a fortnight ($336 for couples) before their pensions are reduced by 50 cents for every dollar earned above that. A pensioner with a job would not only pay income tax on their wages, but also lose a major chunk of their pension. The effective tax rate can easily reach two-thirds. Not surprisingly, most consider it not worth the effort.

And yet, pensioners who work would not only top up their income but also remain engaged in the community and pay tax on their wages.

At a time when the country is desperate for workers, this is a genuine tragedy. Instead of making it easier for those 2.8 million Australians to fill the vacancies, the government is opening the immigration floodgates. For some people, low incomes are compulsory.