Prime Minister Scott Morrison announced on Wednesday morning that he would halt the budget measure.

"I believe that measure is no longer necessary,” Mr Morrison said. 

“It will remain no longer necessary so long as we continue to keep the strong economic policies that sees the growth continue.”

The policy change will cost an estimated $5 billion over the next 10 years.

Mr McCormack welcomed the announcement. 

“The Prime Minister has consulted his cabinet colleagues and we’ve agreed it’s a sensible and pragmatic move. 

“I think if you are a painter in Cootamundra or a brickie in Wagga Wagga or a nurse in Junee – you don’t want some suit in Canberra telling you that you’ve got to work until you’re 70.

“It’s hard back-breaking work what a lot of our people do and being told that they’re going to have to work until 70, I think, was probably a step too far and it’s a sensible move by the new Prime Minister to make sure that that decision has been overturned.”

According to the 2016 Australian Bureau of Statistics Census, more than 1500 of Cootamundra’s 6782 residents are aged between 55 and 69 years.

About 430 residents were in the first age bracket who would have been affected by the policy to increase the age pension to 70.

Then-Treasurer Joe Hockey declared in 2014 that the pension age would increased to 70 for Australians born after 1965.

The move followed Labor’s decision in 2009 to lift the pension age from 65 to 67 to help the budget cope with an ageing population.

Mr McCormac said the proposal to keep the pension age at 67 would go before a meeting of senior ministers next week.

“I’m sure that Cabinet will ratify the decision,” he said.

Opposition leader Bill Shorten said the Coalition had kept the 70-year policy since 2014 and Mr Morrison had backed is as recently as July.

“Scott Morrison voted seven times to increase the pension age to 70. Now he says he was wrong,” Mr Shorten said, 

“How do we know he won't try it again?

“How can we trust him?”