Work Bonus

The Work Bonus provides a concession for employment income for all workers who earn money after turning Age Pension age. This means the first $300 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 $300 per fortnight of their own employment income not counted.

This could mean up to an extra $150 of pension income a fortnight 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 $7800, which can then be applied when required. This also means that if you have not worked for the whole previous year, you can earn $7800 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.

How Australia's retirement system is failing older Australians

How Australia's retirement system is failing older Australians

Rules around super and the Age Pension doom some retirees to years of poverty.

Mooted changes to the Work Bonus 'won't help age pensioners'

Mooted changes to the Work Bonus 'won't help age pensioners'

Work Bonus push started by businessmen seeking cheap labour, says pensioners advocate.

Pension overhaul needed for older Aussies to return to work

Pension overhaul needed for older Aussies to return to work

Experts say pension system punishes those who want to earn employment income.

Calls for pensioners to be allowed to earn more

Calls for pensioners to be allowed to earn more

Business body wants changes to work bonus scheme to address worker shortage.

Call for tax changes for working older Australians

Call for tax changes for working older Australians

Older people working longer are being unfairly penalised for effectively trying to avoid pension

Can you drive an Uber and claim the Work Bonus?

Can you drive an Uber and claim the Work Bonus?

Joe is wondering how the Work Bonus applies to driving an Uber.

Super changes will improve retiree living standards

Super changes will improve retiree living standards

The Actuaries Institute has welcomed changes to Australia's superannuation system.

Cherry picking anyone? MP’s plan for grey nomads

Cherry picking anyone? MP’s plan for grey nomads

MP's plan to harness the working power of retirees on the road.

Is a New Zealand pension covered by the Work Bonus?

Is a New Zealand pension covered by the Work Bonus?

Can a New Zealand pension be exempt under the Work Bonus?

Work Bonus workaround could earn you up to $3250 a year

Work Bonus workaround could earn you up to $3250 a year

How you can work around the Work Bonus and earn up to $3250 extra Age Pension a year.

Is it worth making a pension claim if income is too high?

Is it worth making a pension claim if income is too high?

Should Michael make a pension claim even though he'll fail the income test?

Will I be eligible for the Work Bonus?

Will I be eligible for the Work Bonus?

The Work Bonus enables older workers to supplement their Age Pension.

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