The change was one of the key outcomes of a two-day jobs and skills summit held in Canberra this week bringing together union, business and government leaders.
"Changing the age pension work bonus ... is an important step," Industry Minister Ed Husic said on Saturday.
"We welcome the fact that there are others that have given it the thumbs up."
Under the changes to the work bonus, people on aged and veterans pensions will receive a one-off income credit so working seniors can earn an extra $4000 in this financial year without losing their payments.
The pension change was welcomed by peak business group, the Australian Chamber of Commerce and Industry.
"By removing some of the barriers ... we can make a real difference in their lives and also help businesses struggling to find staff," chamber CEO Andrew McKellar said.
At-home aged care service provider Home Instead also welcomed the pensions changes, saying older employees brought life experience to the workplace.
"It helps them to remain physically and mentally active, while reducing feelings of loneliness, isolation, and diminishing self-worth," chief operating officer Georgia Dowes said.
"This has flow-on benefits to the Australian economy."
Mr Husic hopes the "spirit of cooperation" on display in Canberra during the summit will continue as the nation tackles other problems in the labour market.
"We saw some genuine concrete engagement and cooperation," Mr Husic said.
The summit delivered 36 plans to tackle Australia's economic challenges.
These include more housing investment, lifting the migration cap and plans to develop a pilot scheme to build Australia's technology sector workforce.
The permanent skilled migration cap will be boosted to 195,000 places, up from 160,000, for this financial year to help fill gaps in the labour market.
Super funds and private investors will be encouraged to invest more in housing projects through government incentives.
Mr Husic on Saturday firmed up the government's commitment to the tech sector by announcing the pilot scheme will give workers who want to enter the industry training and employment support.
Proposed changes to Australia's enterprise bargaining system, including multi-employer bargaining, which could see workers in small businesses united under similar conditions, are also on the table.
The summit generated goodwill from across the business community, industry and the union movement, Tourism and Transport Forum chief executive Margy Osmond told Sydney radio 2GB on Saturday.
The planned lifting of migration caps and increases in the permanent resident intake would make an enormous difference to the aviation, tourism and transport sectors.
"There was an amazing amount of goodwill in that room and I think it's a good start to making some change," Ms Osmond said.
The government has also committed $1 billion in joint federal-state funding for fee-free TAFE places in 2023.
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