Joe is wondering how the Work Bonus applies to driving an Uber.
I hope you can help me with the following question, which I think may also be of interest to your members. I am an age pensioner who is allowed to earn an extra $150 per week from working without it affecting my pension. My question is, am I allowed to earn this by working for Uber? If so, am I allowed to deduct expenses, like petrol, etc, on top of the $150?
A. Uber is a popular way to top up income for those on the Age Pension and, with some careful calculations, you can see a benefit to your bank account.
Income from Uber is now eligible to have the Work Bonus applied after the 1 July changes.
Further good news is that your net income – i.e. profit earned as a sole trader – is the amount that is assessed by Centrelink. Therefore, you should be able to deduct all of your work-related outgoings from your earnings before your Age Pension is affected.
The initial outgoings before becoming an Uber driver can quickly mount up: you need to register with Uber, make sure your car is fully roadworthy and, of course, ensure you have the correct insurance, which may mean you see a jump in your premium.
You will also have to declare your income to the ATO, although there are several deductions you can claim to offset this income.
You may wish to consult a tax accountant before making any decisions, and it would be prudent to confirm your individual circumstances with Centrelink.
Do you drive an Uber to supplement your retirement income? Would you recommend it to others?
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