If you’re self employed, will the Work Bonus be applied to your Age Pension?
Rita is self employed and was hoping that the Work Bonus would make it worthwhile to continue working past Age Pension age, but it appears she’s not eligible.
On the Human Services website, under Work Bonus eligibility, it states that the Work Bonus is not applied to self-employed income. I understand this to mean that if you are self employed, you are not eligible to receive the work bonus. Is this correct?
A. This is indeed the case. Income earned from self employment is exempt from the Work Bonus, as well as:
- leave payments if you have terminated your employment
- payments to you as a principal from sole traders or partnerships
- superannuation income.
The reason for this is that you are able to make deductions from your self-employed income via your income tax.