The federal government is being encouraged to take up a policy to help fill a labour shortage.

Currently, pensioners working more than one day a week at the minimum wage will have their benefits reduced.

Australia are being encouraged to look to New Zealand where pensioners pay tax instead of losing their payment.

National Seniors Chief Advocate Ian Henschke told Ben Fordham a change would fill a “black hole” in the budget.

“If you have 100,000 pensioners working and paying tax, you’re gonna have a billion dollars extra in the economy in taxes.

“The only person who’s going to lose … is the politician that ignores this policy.”

Press PLAY below to hear the full interview

Image: Getty