A reformation of the age pension could be the key to solving Australia’s skill shortage, the Australian Chamber of Commerce and Industry says.

The National Skills Commission says 150 occupations have a shortage of skilled workers nationally, with 57 in shortage having strong projected future demand for skilled workers.

But experts say providing an incentive for older Australians to return to the workforce could ease demand.

“A person on the pension can earn up to $480 over a fortnight,” Australian Chamber of Commerce CEO Andrew McKellar told Spencer Howson.

“After that point, the pension starts to get stripped away at 50 cents in the dollar.

“When you break it down, that is not much more than one day a week at on, or just above, the minimum wage.”

Mr McKellar said providing better incentive could attract more pensioners to return to the workforce.

“If someone wants to work two or three days, then it’s going to be much more attractive to them.

“It’s another 450,000 people that could be attracted back into the workforce.”

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