Table of Contents
Work Bonus Scheme: A Financial Boost for Older Australians
Services Australia is encouraging older Australians receiving the Age Pension to take advantage of the Work Bonus scheme, which offers a financial cushion for those looking to enter the workforce. Eligible individuals can earn a one-off boost of $4,000 without seeing an immediate reduction in their Centrelink payments.
Understanding the Work Bonus Scheme
The Work Bonus allows Australians aged 67 and over, who are receiving either the Age Pension, Disability Support Pension, or Carer Payment, to retain more of their earnings when they work. Individuals can start working right away and benefit from this scheme. Specifically, the scheme exempts $300 of fortnightly earnings from being counted against pension payments, meaning that every fortnight without work or earning less than $300 contributes to an individual’s Work Bonus balance.
Justin Bott, a community services officer at Services Australia, explained, “This balance can grow until it reaches a maximum of $11,800.” New recipients of eligible pensions automatically begin with a Work Bonus balance of $4,000, allowing them to earn that amount before their pension payments are affected.
How It Works
If a recipient earns over $300 in a fortnight, any additional income is deducted from their Work Bonus balance. For example, if someone with a Work Bonus balance of $7,900 earns $750 in their first fortnight of work, $300 is covered under the Work Bonus, and the remaining $450 will be taken from their balance. This adjustment would reduce their Work Bonus balance to $7,450, while their pension remains unchanged. Even if they continue to earn $750 for several fortnights, it may take up to 16 fortnights before their Work Bonus balance is exhausted, impacting their pension.
It’s important to note that there’s no need to apply for the Work Bonus; individuals only have to report any income received to Centrelink. The Work Bonus adds to the pension income test free area, providing further financial flexibility.
Income Thresholds
Currently, single pensioners can earn up to $212 a fortnight from any source without affecting their pension. For couples, this amount is $372. By incorporating the Work Bonus, singles can potentially earn up to $512 a fortnight while couples can earn $672, maximising their income while still receiving their full pension benefits.
Conclusion
The Work Bonus initiative supports older Australians in maintaining their financial stability while encouraging them to participate in the workforce. For those considering re-entering the job market or looking for additional income, understanding and utilising the Work Bonus can significantly enhance financial well-being during retirement years.
