Andrew Clennell, political editor of Sky News, says the government sees lifting the retirement income threshold as “something of a hit” on a “difficult” budget.
Retirees can only earn about $300 every two weeks before their government benefits begin to decrease.
Mr. Dutton has proposed raising the threshold to $600.
“It’s not just about keeping people on old-age pensions, it would ensure that people who are currently working are eligible for old-age pensions,” said Mr Clennell.
“So would therefore be a bit of a drag on a struggling budget – is a government opinion.”