Age pensioners will be able to pick up extra shifts and earn some extra cash before Christmas without losing their benefits.
New laws increase the amount they can earn by $4000 to $11,800 from December 1 until the end of 2023 before their pension starts to taper.
It will benefit more than 50,000 pensioners in the workforce.
The new laws also scrap the need to reapply for their payment for up to two years if they exceed the income limit.
The pension is currently cut off after the income limit is exceeded for three months.
Social Services Minister Amanda Rishworth said the changes would help address crippling workforce shortages.
"Older workers are an untapped market, having years of knowledge and skills to offer employers," she said.
"Giving older Australians the choice to engage in the workforce will not only benefit them, it is also an important step towards addressing Australia's labour shortages."
