Mining magnate Gina Rinehart wants to see older people given the choice to stay in the workforce without copping a hefty a tax hit.

Ms Rinehart made the comments while announcing a joint venture deal with two junior WA explorers behind an emerging iron ore project in the northern Goldfields. She said allowing pensioners to work would help bring down the skills shortage.

Currently, pensioners lose 50 cents in the dollar once they work for more than a day.

Speaking with Oliver Peterson, National Seniors Australia chief advocate Ian Henschke said less than 10 per cent of pensioners work.

“And part of the reason is because we punish them if they do,” he said.

“Why have such a punishing rate of tax?”

Press PLAY to hear more about how pensioners can be supported to work more:

(Photo: iStock by Getty)