Most things here are arranged that way and it works pretty well for the most part. There are a few things that still have cliffs, though. One of my friends is on a disability pension but is still able to work part time. If he works too many hours then he's disqualified from the pension so he's had to cap his work hours. Another thing is the childcare subsidy for working households - the subsidy itself scales in a reasonable manner but there's also a hard cap on annual payments which applies above a given household income threshold. If you go slightly over the cap you can end up out of pocket by $10k or more.