Australians on the aged and veterans pensions will be able to earn extra income without losing their benefits in a key outcome of the Jobs and Skills Summit.
After two days of panel discussions in Canberra, 36 "concrete plans" to tackle Australia's economic challenges were established out of the summit, Treasurer Jim Chalmers said.
One such outcome was mobilising the so-called grey army, allowing pensioners to work and help ease pressure on the tight labour market.
Under the changes, pensioners will receive a one-off income credit so working seniors can earn an extra $4,000 in this financial year without losing their pension.
The change was welcomed by peak business group, the Australian Chamber of Commerce and Industry, who said it would provide flexibility for older Australians wanting to work.
"By removing some of the barriers for pensioners who want to work we can make a real difference in their lives and also help businesses struggling to find staff," the chamber's chief Andrew McKellar said.
"With greater flexibility pensioners can choose short term or seasonal work, or take up extra hours each week."
International students will benefit from the decision to increase the duration of post-study work rights. Students will be allowed two additional years of stay for recent graduates with select degrees in areas of verified skills shortages.
The federal government is also extending the relaxation of work restrictions for student and training visa holders until June 30 2023 to help ease skills and labour shortages.
'Turning point'
Investing in housing was another key outcome, with the government announcing a plan to attract more funding from super funds and private investors into housing projects.
"We will make it possible for $575 million in the National Housing Infrastructure Facility to invest in affordable housing by attracting financing from super funds and other sources of private capital," Dr Chalmers said.
"If we can provide via the income stream of this fund a little bit of extra incentive, we can unleash some housing investment in this country."
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Dr Chalmers said housing investment needed to go hand-in-hand with increases to Australia's migration caps also announced at the summit.
The permanent skilled migration cap will be boosted to 195,000 places, up from 160,000, for this financial year to help fill pressing labour shortages.
"This is a turning point in our history as momentous as the post-war 'populate or perish' program that was the foundation of our post-war reconstruction, nation building and national security," Home Affairs Minister Clare O'Neil said.
The government also committed $1 billion in joint federal-state funding for fee- free TAFE places in 2023.
