Why is my Age Pension reducing?

Mariam has the fully allowable amount of Work Bonus ‘banked’, so she can’t understand why her Age Pension still reduces when her husband earns an income.

Q. Mariam

I am receiving the Age Pension; my husband is not yet eligible and currently works casually.  My Work Bonus has reached the maximum of $6500, yet when my husband’s fortnightly earnings exceed the $250 maximum, my pension rate still decreases and the Work Bonus remains the same.  Can you explain how this works please?

A. The Work Bonus is applied to each member of a couple; therefore, your Work Bonus allowance is only applied to the income you receive.

Any income your husband earns does not have the Work Bonus applied, as he is not eligible. This means that any income your husband earns over $284 per fortnight, which is the threshold for couples under the income test, will affect your Age Pension.

If you have any queries regarding your Age Pension payment you should contact Human Services; for more specific advice about your personal situation. You can do this by calling 13 23 00.

Written by Debbie McTaggart