New Centrelink bonus scheme to boost wallets by $4,000
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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.
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.
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.
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.
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.
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.
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.
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.
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