National Seniors Australia’s Ian Henschke says the "problem with Australia" is that it has a pension system that "punishes people" if they earn more than a certain amount of money.

“The government as you mentioned has increased the work bonus by $4,000 but it still means that you have to deal with Centrelink,” Mr Henschke told Sky News Australia.

“You’ve got to deal with the paperwork. You’ve got to fiddle around with the system. You’ve got bonuses and penalties.

“We’ve said to the government to come out with a simple system.”