The Albanese Government is giving us a view of our employment future. Its proposed Working Future policy has rattled business and underlines the goal of Labor to make big, unforgettable social and economic changes, which have business worried.

These new workplace proposals have led to headlines in The Australian such as:

• Business alarmed at Labor’s work goal;
• IR reform ‘flaw’ could push up costs;
• Blueprint crashes into Albonomics.

However, there was one positive headline for some, which goes like this: “Treasurer gives boost to pensioners and welfare recipients”.

In an overdue move, pensioners and those on welfare will be able to get work for pay but also retain some of their benefits for a time before they’re cut.

There are nine major new policies to what is called Working Future, but the one that will make welfare recipients smile is the provision that pensioners can earn $11,800 before their pension is affected. This is a $4,000 raising of the threshold that gave retirees on a government pension a massive disincentive not to look for part-time work.

On top of that, welfare recipients who find a job will be able to keep concession cards, childcare subsidies and other social security benefits for 24 weeks, which is currently only 12 weeks.

The Australian’s Geoff Chambers and Sarah Ison report that this is expected to help 140,000 people each year and will cost about $43 million a year.

Treasurer Jim Chalmers says this policy was a consequence of many of his Labor colleagues coming from “humble beginnings”. He put it this way: “For me and other colleagues here, this is a bit personal because we see communities right across this country, where disadvantage and perhaps unemployment has become intergenerational.”

This isn’t just a sensible measure to make life on a pension or welfare easier, it helps a labour market that’s short of workers. And while it might only affect 140,000 people directly, it shores up Labor’s support for this section of the community.

Right now, Labor is worrying employers with its IR laws, and self-funded retirees suspect that their super will be taxed more heavily in the future.

As from 1 July 2025, the tax on superannuation earnings for balances over $3 million will double from 15% to 30%, which is expected to bring in about $2 billion in additional tax over four years.

Politically, Labor must play to its audience and this Working Future paper does exactly that. However, it has lost business support.

Apart from helping social welfare recipients, the white paper promises measures to help start tackling the nation’s skills and labour challenges.

This is how the AFR’s Phil Coorey summed up the major aspects of the policy proposals: “Other policy decisions announced as part of the white paper include exploring the concept of a national skills passport, and spending $40 million to increase the share of Australians working in areas of high need by expanding TAFE training in emissions reductions, the care sector and digitisation”.

And while business leaders such as the ACCI chief executive officer Andrew McKellar saw merit in the Working Future initiatives, he underlined how the IR bill called “Closing the Loopholes” makes the task of employing more difficult and therefore more costly.

This policy will restrict the use of labour hire and the employment of casuals and regulate the gig economy.

“The white paper talks up workplace flexibility, but the government’s workplace relations changes will do the opposite,” ACCI chief executive officer Andrew McKellar said.

This white paper has some overdue good ideas and will be a political plus for Albo. While many welfare recipients are giving it the thumbs up, he’s losing business and self-funded retirees.

Bill Shorten lost retirees not on a government pension and they actively campaigned against him in the 2018 election, when he threatened to take away franking credits and negative gearing tax deductions. No doubt, many of these retirees would have told their families that Bill was going to shrink their inheritance, and as Paul Keating once said: “In the race of life, always back self-interest — at least you know it's trying.”