Here’s how you can make an extra $300 every two weeks without risking your pension
- Replies 51
With the cost of living increasing, having a little extra cash in your pocket can help out in these trying times. But for pensioners, the issue is usually how to get that extra income without affecting their Age Pension payments.
Fear not, however, because with the implementation of the government's Work Bonus program, extra money can be yours to earn—and now's the perfect time to take advantage of it!
But what is the Work Bonus program?
The Work Bonus increases the amount an eligible pensioner can earn from work before it affects their pension rate. The first $300 in their fortnightly income will not be counted under the pension income test.
This is on top of their regular pension income threshold—$204 for singles and $360 for couples.
Better yet, any unused income you have acquired from work over the two weeks is converted into an income bank that accumulates unused work bonuses to offset future income. This is great news for those who still have seasonal or irregular work.
That's not all. Last year saw the temporary credit increase the amount you can have in your income bank, changing your maximum balance of $7,800 to $11,800.
That means if you have never used the Work Bonus before, then there's still $11,800 available to you in your income bank until December 31st. Come January 1st, this will reset back to the standard limit of $7,800.
So with eight fortnights until the credit expires, single pensioners can potentially earn up to $1,979 a fortnight while also receiving $1,064 (or $1097 from September 20th) a fortnight in age pension payments, for a total of more than $24,500 for the remainder of the year.
Let's take a closer look at how it works:
The Work Bonus is available to all pensioners over the Age Pension age—that's 67 and above.
To be eligible, you must receive income from employment like salary, bonuses and commissions. For self-employed individuals, as long as the income is derived from work involving physical exertion—like plumbing or farming, they would be eligible.
It cannot be used for income derived from managing investments, investment properties, or domestic or gardening tasks in your home.
Take a look at this example. Sally is a single-age pensioner who has $52,000 in investments as well as $20,000 in personal assets. She has never used the Work Bonus before, yet she is thinking about taking a part-time job over the holidays to make a little extra money.
Sally's investments are deemed to earn $5 a fortnight, which counts towards the $204 income threshold. Taking advantage of her Work Bonus allowance and $300 concessional amount, Sally is able to earn $1,775 a fortnight from work.
This allows her to earn $1,780 a fortnight up until the end of the year while still receiving her pension.
Here's another example: Mike and Mary have $408,000 in investments and $20,000 in personal assets, and between them, they have $11,800 in their Work Bonus income bank.
Mike has been offered a part-time job as a handyman earning $800 a fortnight, while Mary has been offered a job in her local cafe earning $600 a fortnight.
Mike and Mary's investments are deemed to earn $276 a fortnight, and as we mentioned already, this counts towards the $360 income threshold that the couple must meet.
With their Work Bonus allowance, Mike and Mary's work income is completely offset, meaning Mike can earn up to $975 a fortnight while Mary can earn up to $1,175 a fortnight and still receive their full combined age pension of $1604 (or $1653 from September 20th).
Plus, they also have $84 a fortnight left of their income threshold to use if needed.
To learn more about the Work Bonus program, you can visit the Department of Social Services website here. The application process for this program is also available on the website.
You may also visit a Centrelink office in person or call Services Australia at 13 2300.
Whether it’s to put a bit more merriment in your Christmas, for travel, or to put away in the bank, the Work Bonus program has its benefits, allowing you to make more money this year without losing your Age Pension.
What do you think of this program, dear members? Are you willing to give this a try? Let us know in the comments below!
Fear not, however, because with the implementation of the government's Work Bonus program, extra money can be yours to earn—and now's the perfect time to take advantage of it!
But what is the Work Bonus program?
The Work Bonus increases the amount an eligible pensioner can earn from work before it affects their pension rate. The first $300 in their fortnightly income will not be counted under the pension income test.
The Work Bonus program enables pensioners to earn $300 more without affecting their pension. Credit: MultifacetedGirl/Shutterstock
This is on top of their regular pension income threshold—$204 for singles and $360 for couples.
Better yet, any unused income you have acquired from work over the two weeks is converted into an income bank that accumulates unused work bonuses to offset future income. This is great news for those who still have seasonal or irregular work.
That's not all. Last year saw the temporary credit increase the amount you can have in your income bank, changing your maximum balance of $7,800 to $11,800.
That means if you have never used the Work Bonus before, then there's still $11,800 available to you in your income bank until December 31st. Come January 1st, this will reset back to the standard limit of $7,800.
So with eight fortnights until the credit expires, single pensioners can potentially earn up to $1,979 a fortnight while also receiving $1,064 (or $1097 from September 20th) a fortnight in age pension payments, for a total of more than $24,500 for the remainder of the year.
Let's take a closer look at how it works:
The Work Bonus is available to all pensioners over the Age Pension age—that's 67 and above.
To be eligible, you must receive income from employment like salary, bonuses and commissions. For self-employed individuals, as long as the income is derived from work involving physical exertion—like plumbing or farming, they would be eligible.
It cannot be used for income derived from managing investments, investment properties, or domestic or gardening tasks in your home.
Take a look at this example. Sally is a single-age pensioner who has $52,000 in investments as well as $20,000 in personal assets. She has never used the Work Bonus before, yet she is thinking about taking a part-time job over the holidays to make a little extra money.
Sally's investments are deemed to earn $5 a fortnight, which counts towards the $204 income threshold. Taking advantage of her Work Bonus allowance and $300 concessional amount, Sally is able to earn $1,775 a fortnight from work.
This allows her to earn $1,780 a fortnight up until the end of the year while still receiving her pension.
Here's another example: Mike and Mary have $408,000 in investments and $20,000 in personal assets, and between them, they have $11,800 in their Work Bonus income bank.
Mike has been offered a part-time job as a handyman earning $800 a fortnight, while Mary has been offered a job in her local cafe earning $600 a fortnight.
Mike and Mary's investments are deemed to earn $276 a fortnight, and as we mentioned already, this counts towards the $360 income threshold that the couple must meet.
With their Work Bonus allowance, Mike and Mary's work income is completely offset, meaning Mike can earn up to $975 a fortnight while Mary can earn up to $1,175 a fortnight and still receive their full combined age pension of $1604 (or $1653 from September 20th).
Plus, they also have $84 a fortnight left of their income threshold to use if needed.
By the end of the year, Mike and Mary will have earned $30,608 in addition to their Age Pension payments amounting to $13,175—a total of more than $44,500 for the year!To learn more about the Work Bonus program, you can visit the Department of Social Services website here. The application process for this program is also available on the website.
You may also visit a Centrelink office in person or call Services Australia at 13 2300.
Whether it’s to put a bit more merriment in your Christmas, for travel, or to put away in the bank, the Work Bonus program has its benefits, allowing you to make more money this year without losing your Age Pension.
What do you think of this program, dear members? Are you willing to give this a try? Let us know in the comments below!
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