Parliamentary Committees

PARLIAMENTARY COMMITTEE ON OCCUPATIONAL SAFETY, REHABILITATION AND COMPENSATION: SOUTH AUSTRALIA'S AGEING WORKFORCE

The Hon. S.W. KEY (Ashford) (11:02): I move:

That the 15^th report of the committee entitled Briefing Report into South Australia's Ageing Workforce: Implications for Work Health and Safety, Rehabilitation and Compensation, be noted.

The Occupational Safety, Rehabilitation and Compensation Committee has not completed an inquiry into the ageing workforce, but it did take the opportunity to meet with the Age Discrimination Commissioner, the Hon. Susan Ryan AO, while she was in Adelaide in May 2012. We also did a comprehensive literature search and research to identify emerging issues associated with changing workforce dynamics and skill retention issues.

Encouraging people to stay in the workforce longer is now a national priority. The global financial crisis has also kept many people working past their planned retirement date so that they can recoup losses. Remaining in the workforce for longer is the most effective way for older Australians to improve their standard of living, or keep their standing of living, many of whom otherwise would retire on the age pension and be vulnerable to poverty.

The commissioner provided the committee with an overview of the work that is occurring at the commonwealth level to reduce the structural barriers to mature-age workers continuing in the workforce. She advised the committee that there are about two million in Australia over the age of 55 who are not working and who would like to work if there was work available. The Australian Law Reform Commission has been inquiring into legal barriers that discourage mature-age workers from continuing in the workforce for as long as they would like, and it has made a number of proposals to eliminate these barriers wherever possible.

South Australia has one of the highest concentrations of older people, and labour participation rates are predicted to fall over the coming years. Against this backdrop, there is an increasing interest by mature-age workers to remain in the workforce for longer, but many may look for more flexible working arrangements to cope with caring responsibilities or because of a disability, or because they just do not want to work full time or overtime.

Australia has a skills shortage and, in order to meet the skills demand in the workforce, Australian workers will be in demand for longer periods through the life cycle. As Australians live a longer and healthier life, they are more inclined to remain in the workforce for longer to meet both financial and personal objectives.

Mature-age workers who remain in the workforce longer are able to accrue more superannuation, and there are also significant mental and physical health benefits to remaining in the workforce. There are a number of benefits for employers who develop age management strategies that not only benefit older workers but also have benefits for young workers.

Many European employers and some Australian employers have invested in a life course approach to age management that enables all workers to maintain their health and wellbeing and to continue working for as long as possible. These approaches have a positive impact on workforce participation and economic development.

The committee heard from the commissioner that there is a significant social barrier that impacts on older workers who wish to continue or enter the workforce either for the first time or after a break. She informed the committee that the rate of complaints about age discrimination was increasing, and the Financial Services Council found that 18 per cent of people over the age of 45 complained that they could not get work because they were considered too old. This is a shocking indictment of our society.

The committee was interested in work health and safety and workers compensation arrangements for mature-age workers and noted that both Western Australia and Queensland have removed age barriers to workers compensation and that the commonwealth workers compensation legislation is currently under review. The review of commonwealth workers compensation legislation will examine a number of areas, including the impact of the changing retirement provisions on the scheme.

In South Australia, injured workers are only entitled to rehabilitation and a return-to-work plan if they are in receipt of income maintenance, which is not payable once a worker reaches retirement age. This is a method of forcing retirement on workers who may have planned to work longer than the Centrelink retirement provisions. Only about 17 per cent of retired people receive personal income through superannuation dividends and other sources, while 80 per cent are drawing either a full or part pension.

The commissioner pointed out to the committee that retirement decisions are not just made on personal health, physical ability or caring responsibilities but they are also made on people's proposed financial security. Forcing people onto the age pension following a work injury—and for many women who have not been able to secure their financial future due to child-rearing responsibilities and other caring responsibilities—may mean that they are vulnerable to poverty.

This arrangement is not only costly to the Australian taxpayer but also prevents workers from continuing to be productive members of society and prevents them from continuing to contribute to superannuation. It also prevents them from improving their standard of living through paid employment. The economic implications for South Australia due to the loss of otherwise productive workers may also be significant as insufficient young people participate in some of the areas of critical employment.

A basic premise of the Australian Work Health and Safety Strategy 2012-2022 is that all workers have a fundamental right to be free from risk of work health related death, injury and illness. Employers need to ensure that workplaces are safe for all workers, including those of mature age. While there are no specific references to mature-age workers within the work health and safety legislation, any improvements made to work processes or practices that benefit mature-age workers will benefit all workers.

For those who would be concerned about the financial blowout of the workers compensation scheme, the Australian Bureau of Statistics found that most injuries occurring to workers are in the 40 to 49 year age group, and this is confirmed by WorkCover statistics. The injury rate for people in the 60-plus range is less than 1 per cent. Removing barriers for mature-age workers to enable them to work into their 70s and beyond will not only require removal of structural barriers but will also need to change negative perceptions and stereotypes about older people.

Older Australians are entitled to the same rights as the rest of the working population, and changing laws to enable them to remain productive will go some way towards ensuring that this occurs. Employers who invest in a proactive and sustainable work health and safety system, as well as workforce planning and development focusing on workers across the life cycle, will maximise productivity and prevent decline due to the ageing process. The committee recommends that further work is required to address the issues associated with an ageing workforce with the resultant change in workforce requirements and skill retention issues.

I express my thanks to the members of the committee for their contribution and deliberations as well as the committee staff who contributed to the preparation of the briefing report—executive officers Ms Carren Walker and Ms Sue Sedivy, and research officer Dr Leah Skrzypiec. I also thank the Hon. Susan Ryan for her attendance to the committee and for WorkCover's assistance in providing statistical and research reports. I also thank Associate Professor John Spoehr at the University of Adelaide for the research reports that he provided to the committee and all the other reports that we were able to access that have assisted the committee in its deliberations.

Mr VENNING (Schubert) (11:11): Mr Speaker, may I comment on how resplendent you look today. I want to support the speech by the Hon. Steph Key, Presiding Member of our committee. I, too, enjoy being present at this committee, with this one particularly because it is a subject very dear to my heart, considering the age group that I am in. It was an honour to have the Hon. Susan Ryan attend as our nation's Age Discrimination Commissioner. It was a unique opportunity to hear from her. This whole reference has been good for me because I am just about to enter into this void, if you like, in 10½ months, so I took more than a casual interest in the subject.

I believe that if you can work, you should. Your age should not come into it. As our presiding member has just said, WorkCover statistics tell us that it is not the over 65s who are the biggest concern, it is the mid-40s (45 to 55). I am out of that, so I am quite safe. I remind the house that in my 22½ years here, I have never had a sick day; I hope that continues. I think we should be encouraging people to continue as contributors in the workforce. A lot of people just think that because they get to 65 or even earlier that they can and should retire and then become a taker of resources via the pension or whatever and sit back, because that is what is expected of them. I think that is quite wrong. I am 67 now and will be 68 when I leave here. I believe that I have 10 to 15 years active life left in me. Why shouldn't you do it?

Mr Treloar: At least!

Mr VENNING: At least! That's right! Thank you, member for Flinders. I am very much encouraged.

An honourable member interjecting:

Mr VENNING: I am well preserved. This subject is relevant and I urge members to read the report because there is a lot of information in it. I think an education program would be a good idea to tell people that just because you have got to that magic age, we are not going to pension you off, we need you there. As the member just said, these older workers are good role models for the young workers, particularly when it comes to blending work with pleasure, home and family, and there is a very unique blend here with the older worker.

As I said, I am a prime baby boomer, right smack in the middle of this period, and a lot of my age group are now leaving the workforce in droves and will be revenue negative to the national economy. We have fewer taxpayers to look after more retirees on pensions, so you do not have to be Einstein to work this out. We are going to have to address this issue.

Any person we can keep in the workforce is a double positive to keep them there and, rather than being a cost to the community, they are a contributor. We should do that. We should all be encouraged to continue in roles as volunteers in the community, so we are not lost. I believe that we ought to be telling people when they get to 65 that if they are thinking of retiring, they should consider cutting back to three days a week and on the other two do volunteering or whatever they want to do. That way it is good for them as they change from one sphere of their life to the next but they will still be contributing to the workforce and also to the taxation department.

My final comment is that I cannot believe that some people who are over 65 and run businesses are not entitled to WorkCover benefits. That has been going on for years and it is an absolute nonsense. I also believe that if a person works past 65, there ought to be taxation benefits accrued. If someone works on past that age, rather than be a cost to the community, they should only be charged half or two-thirds of the normal taxation they would normally pay.

That is an encouragement we ought to have. It is commonsense and it will be a positive for the national Treasurer. This is a subject dear to my heart and I urge members to read the report. I certainly will again; it is good bed-time reading. I think we really could take this issue a lot further because it is going to become more and more relevant as more of us retire.

Motion carried.