While the golden years of retirement are all about enjoying life at your own pace, let's face it – sometimes, you yearn to get back in the saddle.

Whether it's missing the hustle and bustle, seeking social interactions, or simply needing some extra cash, there are undeniable upsides to working post-retirement.

However, for many pensioners considering a return to work, the fear of losing access to income support has been a significant deterrent. The good news is that it appears the government is poised to change this!

Pensioners who wish to rejoin the workforce can now do so with far less worry about losing access to their income support, thanks to two significant changes introduced by the federal government in its new employment white paper.

The government announced that the work bonus will be permanently increased. Credit: Unsplash.

To strengthen the workforce, the government has announced a permanent increase in the work bonus. This bonus allows pensioners to retain more of their pension while employed.

The nil rate period will also be extended from six to twelve fortnights. This means that all income support recipients, including those on JobSeeker, Youth Allowance, and the pension, will have double the time to receive income from a job before their government support is affected.

For those who may not be familiar with the Work Bonus, it incentivises pensioners over the Age Pension age to work, enabling them to retain more of their pension when they earn income through work.

But how does the Work Bonus impact pension rates?

The Work Bonus increases the amount an eligible pensioner can earn from work before it affects their pension rate. Specifically, the pension income test does not consider the first $300 of fortnightly income from work.

The Work Bonus operates alongside the pension income-free area. Effective from 1 July 2023, this area allows for $204 a fortnight for single pensioners and $360 a fortnight for couples combined.

What this means is that a single pensioner over the Age Pension age, with no other private income, could earn up to $504 a fortnight from work and still be eligible for the maximum rate of pension.

That being said, what is the Work Bonus income bank?

Pensioners who have reached the pension age can accumulate any unused portion of the $300 fortnightly Work Bonus concession amount in a special account known as the Work Bonus income bank. The maximum amount that can be accrued in this income bank is $7,800.

This income bank serves to offset future earnings from work that would otherwise be subject to assessment under the pension income test. There is no time limit for using the income bank, and any unused funds can be carried forward, even across multiple years.

The Work Bonus income bank proves particularly beneficial for pensioners who intend to engage in work, especially for those who take on intermittent or occasional employment.

Last year, it was announced that a temporary credit of $4,000 would be applied to Work Bonus income bank balances from December 1, 2022, to December 31, 2023. The maximum income bank balance would increase to $11,800 during this period.

However, pending the passage of legislation, this temporary measure is set to become permanent starting January 1, 2024.

All new pensioners over the Age Pension age will receive a one-off $4,000 credit to their Work Bonus income bank, and the maximum income bank balance will be permanently increased to $11,800.

​

Social Services Minister Amanda Rishworth said, 'We are removing the disincentive that sometimes might happen because a person might get offered some short-term work, but as a result may fear the loss of concessions… and indeed worried that if the work does not work out, they will have to reapply for JobSeeker.'

'So what this extension will do is allow someone to take up short-term work and still remain part of the income support system,' she explained.

'...allowing a smoother transition, to allow a person to take up short-term work and not feel there is a disincentive if that work does not continue.'

The changes are projected to cost $85 million through 2026-27, and they are aimed at removing the disincentive for pensioners to take up short-term work for fear of losing their government support.

Treasurer Jim Chalmers said the policy would help improve the workforce.

'This is about putting the right incentives in place to get more Australians into work,' Chalmers said.

'We want to make sure the stepping stones are in place to enable more Australians to take up a job or work more hours.'

Key Takeaways

• The federal government has unveiled pension changes as part of its new employment white paper, aimed at getting more Australians into work.
• One key change is a permanent increase in the work bonus, which allows pensioners to keep more of their pension while working, and the doubling of the nil rate period from six to 12 fortnights.
• From January 1st, if the legislation passes, new pension entrants will start with a work bonus income bank balance of $4000 instead of $0, and the maximum work bonus balance limit will be maintained at the current elevated level of $11,800.
• The changes are projected to cost $85 million through 2026-27 and are aimed at removing the disincentive for pensioners to take up short-term work for fear of losing their government support.

So, to all our members considering re-entering the workforce or just looking to pick up some part-time employment to keep themselves immersed in the community, it seems like you'll have the chance to earn on the side and still continue to enjoy your pension and other support benefits.

As always, we'd encourage you to contact the relevant authorities to understand all the nitty-gritty details. For more information about the Work Bonus, Services Australia can be contacted by visiting a Centrelink office in person, by phoning 13 2300 or online at Services Australia.

What are your thoughts on these changes? Let us know in the comments below.

 

[Luckyus]

While the golden years of retirement are all about enjoying life at your own pace, let's face it – sometimes, you yearn to get back in the saddle.

Whether it's missing the hustle and bustle, seeking social interactions, or simply needing some extra cash, there are undeniable upsides to working post-retirement.

However, for many pensioners considering a return to work, the fear of losing access to income support has been a significant deterrent. The good news is that it appears the government is poised to change this!

Pensioners who wish to rejoin the workforce can now do so with far less worry about losing access to their income support, thanks to two significant changes introduced by the federal government in its new employment white paper.

View attachment 30829

The government announced that the work bonus will be permanently increased. Credit: Unsplash.

To strengthen the workforce, the government has announced a permanent increase in the work bonus. This bonus allows pensioners to retain more of their pension while employed.

The nil rate period will also be extended from six to twelve fortnights. This means that all income support recipients, including those on JobSeeker, Youth Allowance, and the pension, will have double the time to receive income from a job before their government support is affected.

For those who may not be familiar with the Work Bonus, it incentivises pensioners over the Age Pension age to work, enabling them to retain more of their pension when they earn income through work.

But how does the Work Bonus impact pension rates?

The Work Bonus increases the amount an eligible pensioner can earn from work before it affects their pension rate. Specifically, the pension income test does not consider the first $300 of fortnightly income from work.

The Work Bonus operates alongside the pension income-free area. Effective from 1 July 2023, this area allows for $204 a fortnight for single pensioners and $360 a fortnight for couples combined.

What this means is that a single pensioner over the Age Pension age, with no other private income, could earn up to $504 a fortnight from work and still be eligible for the maximum rate of pension.

That being said, what is the Work Bonus income bank?

Pensioners who have reached the pension age can accumulate any unused portion of the $300 fortnightly Work Bonus concession amount in a special account known as the Work Bonus income bank. The maximum amount that can be accrued in this income bank is $7,800.

This income bank serves to offset future earnings from work that would otherwise be subject to assessment under the pension income test. There is no time limit for using the income bank, and any unused funds can be carried forward, even across multiple years.

The Work Bonus income bank proves particularly beneficial for pensioners who intend to engage in work, especially for those who take on intermittent or occasional employment.

Last year, it was announced that a temporary credit of $4,000 would be applied to Work Bonus income bank balances from December 1, 2022, to December 31, 2023. The maximum income bank balance would increase to $11,800 during this period.

However, pending the passage of legislation, this temporary measure is set to become permanent starting January 1, 2024.

All new pensioners over the Age Pension age will receive a one-off $4,000 credit to their Work Bonus income bank, and the maximum income bank balance will be permanently increased to $11,800.

View attachment 30838​

Social Services Minister Amanda Rishworth said, 'We are removing the disincentive that sometimes might happen because a person might get offered some short-term work, but as a result may fear the loss of concessions… and indeed worried that if the work does not work out, they will have to reapply for JobSeeker.'

'So what this extension will do is allow someone to take up short-term work and still remain part of the income support system,' she explained.

'...allowing a smoother transition, to allow a person to take up short-term work and not feel there is a disincentive if that work does not continue.'

The changes are projected to cost $85 million through 2026-27, and they are aimed at removing the disincentive for pensioners to take up short-term work for fear of losing their government support.

Treasurer Jim Chalmers said the policy would help improve the workforce.

'This is about putting the right incentives in place to get more Australians into work,' Chalmers said.

'We want to make sure the stepping stones are in place to enable more Australians to take up a job or work more hours.'

Key Takeaways

• The federal government has unveiled pension changes as part of its new employment white paper, aimed at getting more Australians into work.
• One key change is a permanent increase in the work bonus, which allows pensioners to keep more of their pension while working, and the doubling of the nil rate period from six to 12 fortnights.
• From January 1st, if the legislation passes, new pension entrants will start with a work bonus income bank balance of $4000 instead of $0, and the maximum work bonus balance limit will be maintained at the current elevated level of $11,800.
• The changes are projected to cost $85 million through 2026-27 and are aimed at removing the disincentive for pensioners to take up short-term work for fear of losing their government support.

So, to all our members considering re-entering the workforce or just looking to pick up some part-time employment to keep themselves immersed in the community, it seems like you'll have the chance to earn on the side and still continue to enjoy your pension and other support benefits.

As always, we'd encourage you to contact the relevant authorities to understand all the nitty-gritty details. For more information about the Work Bonus, Services Australia can be contacted by visiting a Centrelink office in person, by phoning 13 2300 or online at Services Australia.

What are your thoughts on these changes? Let us know in the comments below.

Rather than the pittance you can earn per fortnight, I would have thought a slightly better way waould be for the government to allow those that can work more than the hours you state. If they can a decent part time of more than the pittance app $242.00 per week. Without penalty to the pension, but to counter ther th e pension benefit pay a slightly higher tax rate, this may encourage people to more hours thus benefitting all?.

 

[nbrenner]

Ageism is the barrier to Experienced Pensioners. Where do we find access to jobs, where bias and prejudice eliminate most employment opportunities. It’s depressing and creates a jaundiced view of the economy.

 

[mylittletibbies]

And, what about all the immigrants we are in the process of receiving? Where will they live and how much will they dilute the job market? Plus we have to find a high-paying job for Daniel Andrews!

Many years ago ageism was still running rife.
In my 30s I applied for and got a job as a private secretary
I was happy to have been chosen for the job as there were some lot of applicants.
At a later stage, one of the chaps in the office told me it had been a toss up between myself and another woman, but I was younger, more attractive, well dressed and more highly qualified.
That was the order he put it in, apparently more important for the boss to have a younger more attractive secretary, and my skills came last.
I'd definitely be out of luck these days at 76.

 

[Constance o6]

Excellent idea to have job agencies specifically for retirees seeking work.

 

[Klaus A]

New rules allow more pensioners to work and get ripped of by centrelink.​

You are entitled to $300 work bonus and the $204 in the asset test minus your asset. If you have money in the bonusbank, than centrelink take this out before making the asset test. You loose the $204.

 

[Klaus A]

You are entitled to $300 work bonus and the $204 in the asset test minus your asset. If you have money in the bonusbank, than centrelink take this out before making the asset test. You loose the $204. Centrelink has ripped me off by $1600 or has taken $800 out of my pension entitlement. Never vote Labor again.

 

[Babbie]

Come on please....pensioners have worked all their life why does the government expect them to go and seek a job. Make the youngsters and those on jobseeker go out to work....some too lazy to work and some sitting on their backsides doing drugs...make them work for their money. Giving pensioners more money would boost the economy instead of making us go back to work.

Many people enjoy work. Senior citizens have a lot of life experience, which they can pass onto younger people. Work can also be very social for a lot of people and also keeps the brain working. It also gives people purpose. I still work 2 days a week and love it. Good luck to everyone giving it a go!

 

[Ellev]

Would also be much better for aged/disability pensioners if the gov stops giving the unemployed jobseekers more than the pensioners get, might give the lazy sods incentive to go get a job.

Can only give this misconception a big eye roll.

 

[dino1956]

The unemployed jobseekers, the lazy sods..... comes from someone who has many skills and is easily able to adapt to most environments, and has no trouble finding a job. Other people are less fortunate and with their limited brain power and skills have realised that it's too depressing, continually lining up with one hundred others who are wanting a low skills job. Years ago it was easy for them to find a job they could competently do.
Wait until A.I. takes over the work you usually do, and your skills and intelligence are no longer required, and you join the unemployed job seekers, the lazy sods.

WHAT about The Govt organising this properly and setting up some Job Agencies to handle these age pensioners inbto work? DO something propoerly t=rather than follow The Voice crappy organisation which shows The Govt to be useless?

I have applied for many jobs to get no response. Yes, I want to work but cannot find anyone to help let alone employe me at 67 years old.

 

[JayEeGeeP]

Daniel Andrews won’t have to work. Ex pollies get huge over the top pensions whatever their age, no means test, can earn multi millions and still keep all their undeserved benefits including pension, and can continue to rip off the public purse until they die. It’s time they had the same pension as everybody else, only after they reach pension age and meet the same means test as the rest of us. They are no more deserving of the over the top benefits they get than any other member of the public, most of whom have worked harder than any pollie ever does.

He's likely to receive $300,000 a year as a former politician.

 

[JayEeGeeP]

Would also be much better for aged/disability pensioners if the gov stops giving the unemployed jobseekers more than the pensioners get, might give the lazy sods incentive to go get a job.

Since when have the unemployed received more than the pension.

 

[Jan Purcell]

they should do what they do in New Zealand and the UK, age pensioners can work and get the FULL age pension.

 

[lor3001]

If only the government realised that pensioners working adds to the tax the government receives therefore they are contributing to not draining the money from the government. It works in New Zealand, why doesn’t it work here ? Maybe our government are not able to work out that equation!!!!!!

 

[Littleboy8]

they should do what they do in New Zealand and the UK, age pensioners can work and get the FULL age pension.

Pensioners can work while receiving the full pension. We’ve been through all this in former posts go back and read some of them. Or look up the gov websites

 

[Parrot]

I too would like to see JOB AGENCIES set up for the retirees which would give Us pensioners
A bit more confidence in contacting someone to do repairs etc. Without worrying if
They have made the right decision.

 

[Littleboy8]

I too would like to see JOB AGENCIES set up for the retirees which would give Us pensioners
A bit more confidence in contacting someone to do repairs etc. Without worrying if
They have made the right decision.

They mean special job agencies solely for pensioners to help find work if they want to work not to do repairs around your house etc.

 

[Gsr]

Many years ago ageism was still running rife.
In my 30s I applied for and got a job as a private secretary
I was happy to have been chosen for the job as there were some lot of applicants.
At a later stage, one of the chaps in the office told me it had been a toss up between myself and another woman, but I was younger, more attractive, well dressed and more highly qualified.
That was the order he put it in, apparently more important for the boss to have a younger more attractive secretary, and my skills came last.
I'd definitely be out of luck these days at 76.

I remember one job I applied for in my younger days, I was asked over the phone if I was married, when I replied yes I was told by the male person on the phone he didn’t think I would be suitable after all. The job was as receptionist at a small male dominated private sawmill. All indications were that I had the job until then. This was in the mid 1970s.

 

[mylittletibbies]

I remember one job I applied for in my younger days, I was asked over the phone if I was married, when I replied yes I was told by the male person on the phone he didn’t think I would be suitable after all. The job was as receptionist at a small male dominated private sawmill. All indications were that I had the job until then. This was in the mid 1970s.

Reminds me of the days when they wouldn't accept a married woman's income for a housing loan application, because we would probably get pregnant.
The job I was talking about was in the late 70s.

 

[Clancieblue]

Would also be much better for aged/disability pensioners if the gov stops giving the unemployed jobseekers more than the pensioners get, might give the lazy sods incentive to go get a job.

That is a very harsh response, given that you don't know these people's circumstances. They have rent and mortgages like everyone else but are constantly overlooked for the younger applicant or the one that has a uni degree rather than 30yrs experience. There is a new generation of employers /recruiters out there. When was the last time you applied for a job?

 

[LadyMoonlight]

As an ex high school teacher, trust me when I tell you, I am NOT yearning to get back into the saddle. I am enjoying doing absolutely nothing after decades of continual, unappreciated work...days, nights, weekends, and holidays. The government could not pay me enough money to return to teaching.