New rules allow more pensioners to work and still keep their income support

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.


Screenshot 2023-09-26 at 10.04.31 AM.png
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.

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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.
 
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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.
😂👍
 
Why don't they force these bloody career dole bludgers who have been rorting the system for years and seem to know all the loopholes to go and get a job, the lazy bastards have got no intentions of working and are sponging off the taxes of the workers. Maybe if this was done the retirees/pensioners that have worked and paid taxes for 40+ years could get a decent pension and wouldn't have to supplement their pensions by having to keep working when they should be enjoying their retirement.
 
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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.
Absolutely 👍
 
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.
Most of them only get into politics for the benefits, they don't care about anything else.
 
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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!
Yes, I agree. i bet they are given preference over the homeless we have already. So unfair. Also the 2000 students coming into Queensland for studies. The will also need housing and will probably want part time jobs. The government has not thought this through
 
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.


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.
how can pensioners get work when the long time unemployed cannot and yet you reward them and single parent by giving them unemployed a %6 increase and single parents %15 while the people in there 70s get %3.2 WHATS FAIR ABOUT THAT DOESNT THE COST OF LIVING GO UP THE SAME FOR EVERYONE?
 
if the gov would only realise the pensioners are the ones who spend in their retirement, im a pensioner and would like to pay people to do things for me I would also like to enjoy myself before I shuffle off...I don't hoard money...no reason other than to survive, whatever cash soc.security pays pensioners a very large percent of it finds its way into the community and jobs . Change the name from pensioners to stimulators of the domestic home services...that way the gov saves on subsidies for aged care and the same care is given and the reciprecants are the same, and the carers are now employed
 
Why don't they force these bloody career dole bludgers who have been rorting the system for years and seem to know all the loopholes to go and get a job, the lazy bastards have got no intentions of working and are sponging off the taxes of the workers. Maybe if this was done the retirees/pensioners that have worked and paid taxes for 40+ years could get a decent pension and wouldn't have to supplement their pensions by having to keep working when they should be enjoying their retirement.
Lets not forget single parents are just as bad if not worse
Nowadays there should be no reason anyone gets pregnant and gets the pension for 14 years per child
and including maintenance for 18 plus years
they get paid more than a married couple who use more electricity
/food /car/gas than 1 child would use and if they have more than one child and have not learned they cannot afford to bring up that one child then why are they rewarded again with higher pay increases than the aging population who cannot change getting old
HOWEVER DOLE PEOPLE CAN FIND WORK FASTER THAN THE ELDERLY AND AS FAR AS HAVING CHILDREN THAT THEY CANNOT AFFORD '
WHY REWARD THEM MORE FOR NOT LEARNING THE FIRST TIME
THEN IF THEY CANNOT COMMIT TO MARRIAGE THEN THEY SHOULD NOT COMMIT TO WELFARE
JUST SAY NO OR USE A CONTRACEPTIVE
 
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