The Age Discrimination Commission is proposing major changes of state and commonwealth laws to protect older workers from structural discrimination which would prevent them for working after they retired.

Commissioner Susan Ryan presented to the Gillard government on Wednesday its report titled Working Past our 60s: Reforming Laws and Policies for the Older Worker. The report was launched by Employment Minister Bill Shorten.

Ms Ryan pushed for the dismantling of age bars such as age thresholds that applied to workers compensation, income insurance and important professional licences that hinder access of older Australians to the workforce.

The Australian Human Rights Commission, which supported the call by Ms Ryan, pointed out that the threshold barriers created financial and security difficulties for people who work into their 60s and beyond which sends a message to them that they should no longer be part of the labour force.

"This messaging to older people must change if Australia is to meet the significant challenges of an ageing demographic," The Australian quoted the report.

The report noted that 20 per cent of older underemployed workers who actively searched for employment with more hours in September 2009 were told by companies that they were considered too old to be hired.

Like other western nations, Australia's population is greying. According to the Intergenerational Report of the Treasury, the government expects to add about $60 billion to government spending by 2049-50, of which two-thirds is due to the country's ageing population.

"As older workers become more common in the workplace, adverse and damaging perceptions about older workers would start to fade and ultimately disappear," the report said.

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