Boosted Work Bonus Unlocks Extra Income for Older Australians

Older Australians seeking to work without impacting their pension are greeted with positive news as the new year brings a signifcant enhancement to pension working rules.

Effective January 1, the Work Bonus receives a substantial increase of $4,000, establishing a permanent annual limit of $11,800. This adjustment, resulting from ongoing pension working rule reforms, allows working pensioners to gain an additional $2,000, eliminating barriers for those eager to work in later life.

Understanding the mechanics of the enhanced Work Bonus is crucial. Thankfully, there’s no need for a separate application; individuals only need to declare their income, and the myGov/Centrelink portal provides convenient online access to the Work Bonus balance.

Key Points of the

Enhanced Work Bonus:

• Under existing rules, the frst $300 of fortnightly work income is pension income testexempt, with the unused portion accumulating in a Work Bonus income bank.

• The $4,000 permanent increase is added to the $7,800 annual limit, enhancing fexibility for individuals who work intensely in shorter periods. The extra $4,000 is applied at the start of pension, potentially enabling them to take on extra shifts.

• The Work Bonus operates alongside the pension income free area, enabling eligible as a school crossing supervisor earning $400 a fortnight. Only $100 is counted under the pension income test, ensuring John receives the maximum Age

Bonus income bank higher than her income, none of the $6,000 is assessed under the income test, allowing Julie to retain $6,700 for future earnings.

Couples: the year.

• Carol and Rob: A couple receiving the Age Pension. Carol’s work income of $700 and Rob’s self-employment income of $220 result in a combined assessed income of $400 a fortnight, leading to a $20 reduction in their combined pensions.

• As of January 1, 2024, the permanent increase allows individuals to earn $453 per fortnight without impacting their pensioners to earn up to $657 per fortnight.

Illustrative Examples:

Single Pensioners:

1. John: An age pensioner working

Pension rate.

2. Julie: An age pensioner working as an accountant for three fortnights, earning $6,000. With her Work

In conclusion, the enhanced Work Bonus provides a signifcant income-boosting opportunity for older Australians while maintaining pension eligibility. For more information, individuals can contact Services Australia through Centrelink offces, phone (13 23 00), or online at Services Australia.