Mature Workers feeling the love in Swan’s Budget for Battlers

Mature workers were signalled out in Swan’s 2013 budget. While the amount of dollars being spent in this area does not make it one of the ‘big’ ticket items, it has been a program the Government has been more than willing to promote and talk about. It also has bi-partisan support so we can be confident that this issue will remain on the political agenda for the foreseeable future.

Setting the scene as to why the ‘mature’ worker is getting so much attention?

Well, the ageing of the Australia population and the impact this is going to have on us socially and economically is well documented. Basically we need people working longer as we can’t afford to pay for everyone in retirement, especially with people living longer than ever before.

Baby boomers are the largest generational segment in Australia making up 26% of the population and the over 60s are growing in number at approximately four times the rate of other demographic groups (FSC, Attitudes to Older Workers).

At current trends, by 2050 there will only be 2.7 working Australians for every person over 65. To put this into perspective and to reiterate the impact this will have on our nation, in the 1970s the ratio was 7.5 workers for each older Australian. While 2050 might seem light years away, this analysis shows the unfavourable trending of Australia’s age dependency ratio.

So now you can appreciate why the Government is keen to promote and increase workforce participation among older workers!

What’s on offer for mature age workers 

Firstly, what’s changing?

The Government is phasing out the mature age worker tax offset (MAWTO), which was designed to encourage participation, however may not have been utilised effectively due to no one really knowing about it!

The mature age worker tax offset (MAWTO) will be phased out for taxpayers born on or after 1 July 1957, effective 1 July 2012.

This will not affect any person who currently receives MAWTO and will be maintained for taxpayers who are aged 55 years or older in 2011/12.

If you have a spouse dependent, the dependency offsets have also been reformed into one primary dependency offset.

The offsets to be consolidated are the invalid spouse, carer spouse, housekeeper, housekeeper (with child), child-housekeeper, child-housekeeper (with child), invalid relative and parent/parent-in-law tax offsets.

The new consolidated offset will be based on the highest rate of the existing offsets it replaces, resulting in an increased entitlement for many of those eligible for this measure. Taxpayers who are currently eligible to claim more than one offset amount in respect of multiple dependents who are genuinely unable to work will still be able to do so. Effective 1 July, 2012 (CCH).

And, if you’re planning to retire in a few years you should consider the changes to the Age Pension age for men and women which will be increased by six months every two years, commencing from 1 July 2017 and reaching 67 on 1 July 2023.

The Age Pension will remain the same at 65 for anyone born before July 1952.

Now, what’s been added to help the mature age jobseeker?

Beginning on 1 January 2013, the Mature Age Participation – Job Seeker Assistance Program will provide eligible job seekers aged 55 years and over with intensive job preparation assistance, including refresher or basic training in information technology, skills reviews and peer support.

The program will also provide up to $500 per participant to purchase items or services they need to get work ready, such as a home internet connection or necessary computer software or hardware which can be critical for job searching.

I’m not sure how this has been quantified, but apparently at least 7260 mature age workers are set to benefit. Also are yet to see jobseeker eligibility guidelines. I’m looking forward to this as really not sure of the rationale applied for what constitutes a “mature age worker” as age profiling seems to change with each initiative for some strange reason?

And finally, the Experience+ Career Advice service provides professional career counselling and a resume appraisal service to mature age Australians aged 45 years and over. This service has been extended beyond its original end date of 30 June 2014 to 30 June 2016.

Incentives for Employers of Mature Age Workers

The Government is keen to engage the private sector as a strategic partner in increasing workforce participation among older Australian’s. And what better way than to give them cash!

Initiatives are being launched as a result of Everald Crompton’s review Realising the Economic Potential of Senior Australian’s. I hate the reference to “Senior’s” here, but that’s a story for another day!

Some highlights relating to Employer assistance:

• $29.6mn over four years for initiatives designed to increase the recruitment and retention of mature age workers
• Jobs Bonuses – $1,000 to each employer who employs an eligible mature age jobseeker, aged 50 and over, payable upon 13 weeks of employment, effective 1 July 2012.
• Expansion of ‘corporate champions’ initiative – include adding another 250 employers receiving tailored assistance to help with recruitment and retention of mature age employees, including information sharing and national seminars.
• The Government will broaden the eligibility of the More Help for Mature Age Workers (MHMAW) renamed Investing in Experience. The current MHMAW program supports the recognition of qualifications for mature age workers (aged 50 years and above) at the Certificate III level or above who have trade relevant skills but no formal qualification. It does this by reimbursing employers up to $2,000 for a skills assessment and $2,000 for training costs. This measure expands the MHMAW program to include mature age workers from non‑trade occupations across all sectors of the economy, such as child care and business. Reimbursements to employers will also be restructured.

We are still awaiting on official ‘Eligibility Guidelines’ from relevant Government departments and as soon as they are available will provide another update.

If you have any questions in relation to these initiatives or opinions, we’d love to hear from you. You can also email me directly at Heidi@adage.com.au

And finally, just a quick superannuation review for anyone interested!

Superannuation• The start date of the 2010/11 Budget measure increasing concessional contribution caps for individuals over 50 with low superannuation balances will be deferred by two years, from 1 July 2012 to 1 July 2014. • From 1 July 2012, individuals with income greater than $300,000 will have the tax concession on their contributions reduced from 30% to 15% (excluding the Medicare levy). • From 1 July 2012, the employment termination payment (ETP) tax offset will be limited so that only that part of an affected ETP, such as a golden handshake, that takes a person’s total annual taxable income (including the ETP) to no more than $180,000 will receive the ETP tax offset.

Start-ups urged to consider older, more productive workers

By Michelle Hammond

Thursday, 27 October 2011

Start-ups shouldn’t overlook mature age workers during the recruitment process, an industry expert says, with a new report revealing older workers are often the most productive employees

The latest Ernst & Young Australian Productivity Pulse, based on a survey of almost 2,500 employees, suggests people become more motivated in their jobs as they grow older.

The survey measures Australian workers’ sentiment around the biggest barriers hindering productivity, and the opportunities available to improve performance.

According to the survey, 80% of respondents from the 55-64 age bracket say they are motivated to perform to the best of their ability, compared to 61% of those aged 20-24.

The survey also found that salary, incentives and bonuses are among the least motivating factors for those aged over 45. In contrast, these are the main motivators for those aged under 45.

Heidi Holmes, managing director of niche job site Adage.com.au, says cash-strapped, time-poor start-ups should look upon mature aged workers as prime job candidates.

“In a youth-obsessed market, many recruiters and employers are dismissing the mature market even though they are likely to deliver higher productivity [and] lower turnover,” Holmes says.

“[They are] less demanding than their younger counterparts. There are also more of them. For every one new labour market entrant, there are seven available over the age of 45.”

Holmes says many older workers need to extend their working years to supplement deleted super funds, increased living costs, and the prospect of looking after two generations of dependents.

“Time and time again, we are seeing compelling research to support hiring mature age workers for financial and diversity reasons, yet employers are still reluctant to specifically target this audience,” she says.

Holmes says some employers are starting to take advantage of the neglected talent pool, including The Smart Group, a direct sales and marketing company.

“The standard of the applicants that we have received so far has been great and we have had a huge success rate,” company spokesperson Rachel Davis says.

Vicki Crowe, managing director of Canon Recruitment, believes divorced middle-aged women are ideal job candidates as they are more inclined to work in order to support themselves.

According to Crowe, these employees also tend to be more committed to one employer than their younger, job-hopping counterparts.

“Gen Y employees change jobs a lot more [whereas] a divorced middle-aged woman has been identified as a long-serving employee,” Crowe says.

“In an ideal world when businesses are looking for a [job] candidate, they’re trying to find her.”

Source: Start Up Smart

Recruiters ignoring mature talent

Tuesday 01 November, 2011 | Nicholas Brant

MAYBE with scientific data, they’ll start to listen. Recent research confirms that excluding older people from the workforce is not just short sighted and prejudiced: it’s bad business.

Mature age workers are among some of the most motivated and productive participants in the workforce, according to a study by accounting firm Ernst and Young.

The results of the study by the firm found that as people get older they become more motivated to perform to the highest capacity. The research found that an overwhelming 80% of respondents aged 55-64 said they were motivated to perform to the best of their ability, while only 61% of respondents from ages 20-24 supported this statement.

According to adage.com.au, which represents the mature age workforce, many recruiters and employers are dismissing the mature market even though they are likely to deliver higher productivity, lower turnover and are less demanding than their younger counterparts.

The report also found that there were seven available workers over the age of 45 for every single new labour market entrant. The research also found that salary, incentives and bonuses were one of the least motivating factors for those over 45 while it was the most motivating for those under 45.

Adage managing director Heidi Holmes said there was an unintended bias towards mature age workers from the 45-65 age bracket.

“Time and again we are seeing compelling research to support hiring mature age workers for financial and diversity reasons, yet employers are still reluctant to specifically target this audience,” Holmes said.

“It’s a result of recruitment consultants, because they are often quite young, having an unaware bias towards older workers.”

At the mercy of recruiters

Holmes said recruiters under 30 years of age might not fully appreciate experience cited on a resume from the 1970s or 80s and that the bias was probably unintentional.

“I don’t think its leadership not wanting to hire mature age workers; it’s often through that recruitment process in that very early stage where its happening,” she said.

Holmes said an unconscious bias can happen with recruitment organisations and internal recruiters and organisations could therefore appear a bit youth obsessed.

She said older people stayed in the workforce for a number of different motivations, financial and otherwise.

“Some people have had their super decimated in the last few years, also we’re living longer,” she said.

“I think there are people who are not financially motivated but they see their career as being connected to a community … people often retire and six months later they are bored or they are driving their husband or wife nuts.”

Holmes said a common motivator was an increased financial burden where ageing workers could still have older dependants such as living parents or younger dependants still at home who were paying university education debts.

Direct sales and marketing organisation The Smart Company recently turned to the mature age market to fill roles where they traditionally face higher turnover.

Recruitment head Rachel Davis said the standard of the applicants received for the positions was significant and the company had had a huge success rate so far.