The Age Pension Work Bonus is a current government incentive that allows older Australians (pensioners) to return to the workforce for part-time work, without losing part of their pension.

The Age Pension Work Bonus is a current government incentive that allows older Australians (pensioners) to return to the workforce for part-time work, without losing part of their pension.

One of the main resistances encountered throughout this is the notion that doing so will cause many pensioners to lose part of their pension.

From 1 December 2022, pensioners will be able to accrue more in their Work Bonus Balance to offset their future income tests (until 31 December 2022). The work bonus balance for pensioners has been increased by $4,000 (from $7,800 to $11,800 for couples). Your work bonus balance will reset to $7,800 on 1 January 2024.

The measure will affect people over age pension age receiving the following payments:

• Age Pension.
• Disability Support Pension.
• Carer Payment.
• Veterans Entitlement Act Pension and Income Support Supplement.

Most importantly, this increase will be implemented automatically, with no need for additional effort on your part.

The Work Bonus has been a driving force for allowing skilled workers to return to industries suffering worker shortages without fear of losing or reducing their current income.

Under the bonus, those receiving the Age Pension can earn an additional $300 each fortnight without being
counted towards their income tests.

This means you can still receive the full-age pension, with an additional earning of $150 per week in wages. This amount does not count towards the income test, and you would most likely still be below the tax-free threshold.

Income eligible for the Work Bonus includes

Employment income from paid work

Undertaken by the person as an employee in an employer/employee relationship.

This includes but is not limited to salary, wages, leave payments, commissions, employment-related fringe benefits, bonus payments, supported wages and casual loadings.

Gainful work income earned through self-employment

So long as the work involves personal exertion on the part of the person concerned.

Examples include operating a business as a plumber, farmer, wedding celebrant or artist.

If you are a pensioner who may be undertaking work during retirement or are approaching retirement and want to know more about your options, start a conversation with a professional adviser as soon as possible.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.