The Work Bonus provides a concession for employment income for all workers who earn money after turning Age Pension age. This means the first $250 of an individual's earnings will not count as income under the income test. This doubles for couples where both are working – both parties may have the first $250 per fortnight of their own employment income not counted.
This could mean up to an extra $125 of pension income a fortnight (approximately $3250 a year) for those on a single Age Pension and double this amount for a couple where both are working. Only income derived from salary paid in or outside Australia and director’s fees will be disregarded under the Work Bonus. Income from payments to a principal from sole traders or partnerships, investments and superannuation are not subject to the Work Bonus.
If your employment is seasonal or sporadic, you can ‘bank’ your Work Bonus allowance, to a maximum of $6500, which can then be applied when required. This also means that if you have not worked for the whole previous year, you can earn $6500 before your Age Pension is affected. You do not need to apply for the Work Bonus, Centrelink will automatically apply it when your report your income.
You can find out more about the Work Bonus by viewing our articles below.
The Actuaries Institute has welcomed changes to Australia’s superannuation system.
MP’s plan to harness the working power of retirees on the road.
The work test rules must be met for super payments.
Can a New Zealand pension be exempt under the Work Bonus?
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