As the cost of living continues to rise, many Australian seniors are feeling the pinch on their finances.

However, those on the Age Pension could see a potential boost thanks to some changes in the Work Bonus scheme.

Yet this initiative could also see more retirees consider re-entering the workforce to supplement their income.

In a new update, the government permanently increased the Work Bonus income bank limit from $7,800 to a more generous $11,800.

New pension claimants could also see a $4,000 starting balance instead of starting from scratch.

For those who are rejoining the scheme, topping up to a $4,000 balance is also on the cards.

Centrelink's Work Bonus scheme could boost pensioners' incomes in a new update. Image Credit: Shutterstock/Nils Versemann

Financial adviser Alex Jamieson explained the benefits of this scheme, noting that a new Age Pension claimant could 'get $4,000 straight up' to their Work Bonus balance.

According to him, any unused portion of the Work Bonus can be carried over into the following year, significantly boosting a retiree's financial flexibility.

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Services Australia confirmed that those who claimed between December 1, 2022, and June 30, 2024, will be eligible for a one-off Work Bonus boost of $4,000, provided they have yet to receive one.

The Work Bonus scheme is for pensioners who want to work without worrying about reduced Centrelink payments.

Under this scheme, pensioners can earn up to $300 every fortnight from employment.

Any unused amount could be stored in an 'Income Bank' for future use.

With around 195,000 new Age Pension recipients each year, this change could impact a significant number of older Australians.

Members accrue $300 to their Work Bonus balance each fortnight, now up to the maximum of $11,800.

Centrelink then uses this balance to offset any future income from work that would usually be counted under the income test.

Pensioners don't need to apply separately for the Work Bonus.

All they need to do is inform Centrelink about any income received from work, and they'll take care of the rest.

You may read more about the Work Bonus here.

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As of writing, single pensioners could receive up to $212 a fortnight from any source and still be eligible for the full pension, while couples can receive $372 a fortnight.

With the Work Bonus, single pensioners could earn $512 a fortnight and $672 a fortnight for couples, all without affecting their Centrelink benefits.

Jamieson suggested that pensioners could typically work around 'one to two days per week' and recommended looking for casual employment that offers flexibility to navigate the income test thresholds easily.

Key Takeaways

• Centrelink's Age Pension recipients could receive a $4,000 boost to their Work Bonus balance under new changes to the scheme.
• Pensioners could earn up to $300 each fortnight from work without their Age Pension payments being reduced, with the ability to bank unused portions.
• A one-off boost of $4,000 is available for new claims lodged between December 1, 2022, and June 30, 2024, should they have yet to receive a boost.
• The increased Work Bonus could allow pensioners to work one to two days per week without affecting their Centrelink benefits, helping to mitigate cost-of-living pressures.

Are you an older Aussie who has returned to work or is considering it? Share your experiences and thoughts about this update with us in the comments below.

 

[Klaus A]

Lies, lies and lies. Your fortnightly bonus is $300 and you can earn another $200 and a bit , but this is only if you have no assets in your asset test. You most likely have a car to start with, thats an asset. Nothing has changed on this except for the asset limits, they have increased over the years.
The Bonus of $4000 is only given to you ones, when you enter the scheme and you only get the full benefit out of it if you have no entitlement in the asset test anymore. The $4000 go into your bonus bank and your income gets taken out of this bank. The extra up to $200 get ignored and you loose it.
In other words a scheme for the more effluent, but the ones who need the money, get ripped off.
I have all the receipts to prove this , but my MP's office strang me along a string for many month until I gave up on it.

 

[mitchellowe]

their is still nothing for those that CANNOTwork
the DISABLED THE CARERS AND THE ELDERLY WHO ARE UNABLE TO WORK

 

[Greentrees]

Does not help those of us in our late 80's or 90's. Everything is still going up for us too.

It doesn’t help me & my peers. I am bordering on 92.

 

[Liisa]

What they don’t tell you is that if you decide to work you need to pay tax on your pension as well as tax on your earnings. I ended up with a $4500 debt as a result of not being told this. The work bonus is a joke. How can they legally take tax on a pension which has been paid for by the taxes I have paid all my life! We’re being taxed on our tax!! They give with one hand but take with the other.

 

[novezar]

Hey, "Veggie", don't go to "Wallet Wizard". I think their interest rates are abt 49% or thereabouts. Some one has to pay for the "Dill Bill" with a cape who appears out of nowhere with his Goofy stance & flaying his arms around like a Goon.

 

[Chays]

They still gave absolutely nothing to those that can't work and don't have assets. This was a waste of time. They keep telling us how much we got, when in reality many of us got absolutely nothing!

 

[Jan Purcell]

I am an age pensioner 83years old, I am a crossing supervisor in Frankston have been doing it for 33years, love the little children, if you want a part time job this is the one, you get good pay and still get the pension, have to let social security know every fortnight what you earn, also you get super, holiday pay and sick pay and long service leave. Its worth while also does not affect my husbands age pension as well. In the UK and New Zealand you can earn a lot and still get the full pension and don't have to let the social security know how much you earn.

 

[Gsr]

You can earn the amount from any source, not working only, so investments or part pension from birth country if you had worked long enough there to get a part pension. I get some from UK but it never goes up and isn't enough to affect my pension. Also it fluctuates because of the floating AU dollar but never by enough to get near the limit, and even less likelihood now.

I think it is only from paid employment you get the work bonus taken into consideration. any income we receive from share dividends or the sale of shares is not considered as income that qualifies for the work bonus allowance, even though we pay tax on it. Also hubby doesn’t work and his work bonus went up to $11,800 or whatever it was, last week it dropped back to $7,800. No communication from Centrelink as to why or anything. Guess they are taking from the pensioners who don’t work to give to new pensioners as their start up work bonus.

 

[Gsr]

In UK when one spouse reached age pension age they still received it if the other spouse was working, which can happen quite often with age differences in married couples. It really surprised me when I came here and saw a pension was not granted if the other spouse was still working. It really upset a lot of men who were a decade or so older than their working wives. I know this because I worked at DSS many years ago. Don't know if this still applies in UK or Oz.

If one spouse is aged pension age and the other still working some pension may be payable based on the income the working spouse makes. There is a maximum income amount that the working spouse can earn before no pension is payable, my hubby received a part pension after he retired and I kept working, now we are both pension age and both receive part pensions as I still work two days per week. We get all the pensioner benefits, which helps.

 

[Annna]

Apparently, if you are in New Zealand and on the aged pension (superannuation I think they call it) your pension doesn’t get affected, you just get taxed like normal. It would be more helpful to working aged pensioners if we had the same system here.

But if it is superannuation, it suggests that the funds are money paid by your employer and by you over your working life. If it is that, then it isn't a government pension.

 

[Annna]

I am a retired teacher and constantly being asked to fill the gaps due to chronic teacher shortage and I love doing it but why is my husband who does not work get penalised by losing his pension the same as me? He has this 'credit' but it isn't used to allow him to 'earn' from my income until it too is exhausted. This seems unfair and counter productive to the government wanting teachers to return to work. Or am I missing something?

It is wrong because you, your husband and many other people have likely worked for decades and paid your/their
share of tax. This should be the criteria for paying you and your husband and others in this group an age pension.

Talk of safety net is all well and good but you and others like you get penalised for having worked and saved and for still working now while thousands of others who either haven't worked or who have spent money earned during their working lives do qualify for the age pension.

You subsidised the age pension during your working life and this should be reciprocated but it is not.

 

[Bluesshaker]

The so called Work Bonus is a poverty trap where the effective rate of taxation exceeds 50% as soon as this limit of $11, 800 pa is reached. High income earners throughout Australia would not stand for it and the Govt would be thrown out if faced with such an unfair rate. Rather than letting age pensioners work and pay income tax, the current govt persists with the restrictive Work Bonus it as if doing aged pensioners a massive favour. As a qualified primary teacherI would incur an immediate overpayment if I work two days per fortnight. Under these circumstances I cant be relied on to work more or be penalised substantially. Who here wants Centrelink after you if you incurred an overpayment or to work for half pay. Wake up Albanese and Chalmers, you’ve done nothing very much for age pensioners who want to work or cope with the increasing cost if living.Your tax cuts offered nothing as well or hadn't you noticed. My local member is Libby Coker in Corangamite. After contacting her I received a glib response. I have decided to not vote for her again. Perhaps other aged pensioners feel as strongly about this.

 

[ElizabethL]

But if it is superannuation, it suggests that the funds are money paid by your employer and by you over your working life. If it is that, then it isn't a government pension.

The name may suggest that but it is a government pension but they call it New Zealand superannuation. I receive part New Zealand supplement to top up my Australian pension.

 

[Annna]

Thank you

The name may suggest that but it is a government pension but they call it New Zealand superannuation. I receive part New Zealand supplement to top up my Australian pension.

I've learned something today

 

[mitchellowe]

What they don’t tell you is that if you decide to work you need to pay tax on your pension as well as tax on your earnings. I ended up with a $4500 debt as a result of not being told this. The work bonus is a joke. How can they legally take tax on a pension which has been paid for by the taxes I have paid all my life! We’re being taxed on our tax!! They give with one hand but take with the other.

THEY ONLY GIVE ON ONE HAND AND TAKE WITH THE OTHER HAND FROM THOSE THAT CANNOT AFFORD IT
'THE RICH WOULD HARDLY CARE LESS
SELECTED POOR PATRONS ARE MAINLY SHOWN BY THE DIFFERENCE LOW LOW-INCOME INCREASES COMPARED TO PENSIONS HUGE HUGE DIFFERENCES

 

[mitchellowe]

The so called Work Bonus is a poverty trap where the effective rate of taxation exceeds 50% as soon as this limit of $11, 800 pa is reached. High income earners throughout Australia would not stand for it and the Govt would be thrown out if faced with such an unfair rate. Rather than letting age pensioners work and pay income tax, the current govt persists with the restrictive Work Bonus it as if doing aged pensioners a massive favour. As a qualified primary teacherI would incur an immediate overpayment if I work two days per fortnight. Under these circumstances I cant be relied on to work more or be penalised substantially. Who here wants Centrelink after you if you incurred an overpayment or to work for half pay. Wake up Albanese and Chalmers, you’ve done nothing very much for age pensioners who want to work or cope with the increasing cost if living.Your tax cuts offered nothing as well or hadn't you noticed. My local member is Libby Coker in Corangamite. After contacting her I received a glib response. I have decided to not vote for her again. Perhaps other aged pensioners feel as strongly about this.

I THINK I AM THE BIGGEST COMPLAINER ABOUT GOVT TACTICS WHICH TO ME SEEM ON PURPOSE TO DENY PENSIONERS A REASONABLE WAGE INCREASE WHILE THEY LINE THEIR POCKETS

 

[Greeg g]

It's a work bonus not a pension bonus. A very deceptive headline that once again should have read " Another kick in the guts for pensioners"

 

[Bluesshaker]

The decision to arbitrarily impose a 50% reduction in the aged pension for every dollar earned above this limit is an arbitrary bureaucratic decision and not a so called Work Bonus as the name implies. Is it all too difficult to reduce this penalty in line with PAYG taxation or as a sliding scale to incentivise a return to work for those aged pensioners who want to work and are capable of it. With nothing available for pensioners from the recent tax cuts, surely a readily available cost of living measure to the govt is to consider a less arbitrary reduction in the pension when someone works part time. Clearly they don’t have a problem doing it that way in New Zealand so there is no technical reason why not, only bloody minded laziness not to do something about it. The National pensioners association advocates for it but the current govt has stopped listening.

 

[Geoff01]

More virtue signaling and vote buying by the liebour circus, pretending to care about seniors.

I will bump my bum on the moon the day any government cares about seniors. Liebour circus is correct.

 

[Paul1951]

Just keep in mind that you will be paying tax on the amount you earn plus your pension.
I worked within the requirement of the work bonus and ended up with a $2000.00 tax bill