The cost of living crisis has affected many Australians' wallets and bank accounts.

For seniors who live on fixed incomes, Centrelink recently announced a form of reprieve for their finances.

Senior Australians may receive more money in their pockets soon.

Centrelink's Work Bonus Scheme recently announced a 'one-off boost' of $4,000.

What is the Work Bonus Scheme, and how does it work?

The Work Bonus Scheme is a government initiative that encourages senior Australians to stay in the workforce, even for a few hours a week.

The Work Bonus Scheme also boosted many seniors wallets in 2024. Image Credit: Tech Business News

It allows seniors to earn more from work before their pension payments get affected.

The Work Bonus Scheme allows seniors to keep more of their hard-earned cash without worrying about reductions on their pension.

For seniors claiming the pension for the first time, Centrelink will automatically give them a Work Bonus of $4,000.

Who is eligible for the Work Bonus Scheme?

Seniors over the age of 67 and receiving Age Pension, Disability Support Pension, or Carer Payments are eligible for the Work Bonus Scheme.

There's no need to apply separately for the Work Bonus as it is applied automatically.

Seniors just need to report their income to Centrelink.

What counts as 'work'?

The Work Bonus applies to income from paid employment.

This type of employment includes casual, part-time, or full-time jobs.

Self-employed individuals like small business owners or those doing odd jobs may also qualify for the Work Bonus Scheme.

However, the Work Bonus Scheme does not apply to superannuation, rental and investment incomes.

Why is the Work Bonus Scheme important?

With the cost of living on the rise, Australians, especially seniors, are looking for ways to supplement their income.

The Work Bonus Scheme may make it easier for seniors to take on extra work.

Whether it's a few shifts at the local shop, helping out with grandkids' school runs, or even starting a small business, seniors may earn more without the fear of losing their pension.

It's also a great way to stay active, social, and engaged in the community, all while boosting seniors' bank balances.

Here's how seniors can maximise their Work Bonus:

• Keep Centrelink information updated: Always report income accurately and on time to avoid any issues.
• Track your Work Bonus balance: Check balances through Centrelink online accounts or by contacting Services Australia.
• Plan your work: For those working in certain months, such as the Christmas holidays, seniors can 'save up' their Work Bonus balance in quieter periods.

For more information about the Work Bonus Scheme, please call Services Australia at 132 300 or go to their website here.

Key Takeaways

• Aussies on the Age Pension, Disability Support Pension or Carer Payment can benefit from the Work Bonus scheme without it reducing their Centrelink payments.
• Eligible pensioners automatically receive a $4,000 Work Bonus balance if they are claiming for the first time.
• Eligible seniors just need to report any income from work to Centrelink to receive the said benefit.
• Seniors with part-time and full-time work or self-employed individuals qualify for the Work Bonus Scheme.

Have you taken advantage of the Work Bonus Scheme before to boost your income? Did it help you stay in the workforce or try something new? Share your experiences, tips, or questions about this one-off benefit in the comments section below.

 

[Viellarde]

Not EVERYONE!
Even though I've worked my whole adult life (shortly after school and 90% full-time) I had a work accident, resulting in 3 back surgeries, including a plate and spinal prosthesis, due two out of the three surgeries having been botched... preventing me from working from the age of 49!
I was also a single mother at the time, with 2 kids at uni.

I LOVED working and was also very involved in a number of volunteer organisations my whole life, including 7 years as vice-president for one and 7 years as a secretary for another, which ceased at the time of my accident,
I eventually sued the company, which ended in a 4.5 years legal case, with no family near me and only my now late partner, who was a quadriplegic, to support me!

The case took its toll and literally changed my personality from an incredibly strong woman of the world, to someone, I myself, still don't recognise anymore - even though I won my case.
My injury and health have declined, even more rapidly than I expected.
I always thought I would still be working till at least 85 - considering my father is turning 96 this year!
Well, I guess being bedbound for 3 years has made my decision for me.
I've never been one for self-pity, so just posted this to say:
Moral of the story... "Not everyone has their whole life to prepare for old age"!

A month ago I posted a joke about nosey people, which I actually DID DO, and which their father used to laugh at too, when my kids were in kindy and primary school:
I used to tell my kids, if anyone asks what work your daddy does, tell them, "He works on Mummy's nerves!"
And got a response "YOU DESERVE IT", (NOT sent in jest) from @gamiry, liked by @Veggiepatch as well as the response from a post I made answering a male member regarding Illegal Migrants, from @Sherril, calling me a "BIGOT", "SELFISH", UNEDUCATED etc.
This should brighten your day even more!

Interruptions, especially to a woman's work life, do not contribute much to saving ability. Also, let's not forget that superannuation for women didn't kick in until the late 1980s, unless they purchased an individual policy.
I'm so sorry to read your story. This would have been a severe blow to your self-esteem. Nevertheless, you kept living through it all. I want to say that I always look for your funnies and other posts. You're strong and still useful!!!

 

[Karen3g]

Wonderful that those young enough and well enough can earn a little more without tax taking most of it. But what about the rest of us? I worked until I was 76 and worn out physically and mentally. I’d like a bit of help to counter cost of living challenges too. I’m on the age pension and very small super fund and it’s a real struggle.

 

[Karen3g]

Everyone has had 60 years to prepare for Old Age, The Pension is meant to supplement ones Savings, not to be the next Wage source. Baby Boomers see the rising cost of seeing a Doctor, Power Bills, etc, at the forefront of their problems while worries about Superannuation are at the bottom of the list.

How do you prepare for a massive mental health breakdown followed by divorce in which everything is taken by the other side leaving you homeless and broken in your late 50’s? I got myself back together after a few years and kept working until 76 so I have a very modest home in a remote corner of the country and a tiny super fund. I’m now 81 and struggling. Lots just like me.

 

[Granty boy]

Hi All, i would like to say That i believe its Very Very wrong & Misleading that you guys are advertising that Seniors can get Hospital & Extra cover for $3.39 PER WEEK on the top of the page i first opened today, the add is a Goldy Colour & has the Government Emblem in the top left hand corner. So as soon as you click on this it goes straight to Compare Club Add, then one of the first things you see are get covered for just $24 something p.w.. If i can get Hospital & Extras COVER FOR THAT AMOUNT I WILL SIGN UP IMMEDIATELY .
I SEE THAT AS FALSE ADVERTISING...Is there not laws against that behavior, especially aimed at Seniors.
Stop this B.S. & BE CAREFUL WHAT FACTS YOU SUPPORT, I have taken a photo of this and i will try to print this page out for further reference...Shame on you

 

[Milica]

Everyone has had 60 years to prepare for Old Age, The Pension is meant to supplement ones Savings, not to be the next Wage source. Baby Boomers see the rising cost of seeing a Doctor, Power Bills, etc, at the forefront of their problems while worries about Superannuation are at the bottom of the list.

Everyones life story has been different - otherwise we would all be robots preparing for Old Age, do Robots Age? This is a ONE Off payment that gets eaten up quickly especially if one is working
weekly part time.

 

[Milica]

It is $433/wk or as a couple $45kpa tax free, not sure what makes one think they deserve more, to assume paying taxes and that they would just sit there waiting for U to retire while using the services they provided you with is just laughable. The Age pension was only ever a stop gap for people who could not support themselves post-retirement, but the onus was always on the individual not the Govt./taxpayer, I'm 77.

It's about looking after seniors as they age - most of whom have worked hard all their lives, brought up families, contributed to society - paid TAXES - not sure what is laughable about that! The age pensions 1st criteria is to become a certain age, you are then entitled to an age pension, depending on your hard earned assets and income testing, during your lifetime, most pple by seniors age are in need of an age pension. If Gov't Stopped giving the politicians a lifetime pension of an astronomical amount! you would have plenty to share around to the layperson that is struggling daily, to pay rent, put food on the table, stay warm, and pay bills.

 

[Mr Universe]

If the government wants to genuinely help pensioners, then why not give all pensioners a pay rise of $153.84 per fortnight, or $4,000 per year and not just reward those who are already able to top up their pension with paid work? Many pensioners simply can't do paid work for a large number of reasons, that is why they are pensioners. Fifty years in the workforce and we're still being told Keep Working! The government of any party is only happy with a pensioner when they are dead and no longer an expense. Beware - they will eventually bring back death duties just so they can still tax you from the grave! Death and Taxes - the only two things guaranteed in life.

 

[Milica]

The Work Bonus has definitely helped us in the past. As rates, insurances and general living costs have impacted all of us, the bonus has been a welcome find.
It is still hard to stretch our pention so I would just like to add on. It would be amazing if our government would look at how New Zealand handle pensioners incomes. They all receive a pention but are allowed to continue working. All income is then taxed. This is a brilliant way as the government are still receiving income tax and people are not penalised for aging.
Thanking you Anna G

Yes sounds good NZ - but you get taxed on your work and you also pay tax on your pension when tax time comes, even though c/link takes 50c out of the dollar after being allowed to earn the $300 per fortnight - most end up with a tax bill!

 

[Milica]

If the government wants to genuinely help pensioners, then why not give all pensioners a pay rise of $153.84 per fortnight, or $4,000 per year and not just reward those who are already able to top up their pension with paid work? Many pensioners simply can't do paid work for a large number of reasons, that is why they are pensioners. Fifty years in the workforce and we're still being told Keep Working! The government of any party is only happy with a pensioner when they are dead and no longer an expense. Beware - they will eventually bring back death duties just so they can still tax you from the grave! Death and Taxes - the only two things guaranteed in life.

The almighty $ has always been the motivating factor, along with power and control.

 

[Viellarde]

Hi All, i would like to say That i believe its Very Very wrong & Misleading that you guys are advertising that Seniors can get Hospital & Extra cover for $3.39 PER WEEK on the top of the page i first opened today, the add is a Goldy Colour & has the Government Emblem in the top left hand corner. So as soon as you click on this it goes straight to Compare Club Add, then one of the first things you see are get covered for just $24 something p.w.. If i can get Hospital & Extras COVER FOR THAT AMOUNT I WILL SIGN UP IMMEDIATELY .
I SEE THAT AS FALSE ADVERTISING...Is there not laws against that behavior, especially aimed at Seniors.
Stop this B.S. & BE CAREFUL WHAT FACTS YOU SUPPORT, I have taken a photo of this and i will try to print this page out for further reference...Shame on you

 

[mOiOz]

Interruptions, especially to a woman's work life, do not contribute much to saving ability. Also, let's not forget that superannuation for women didn't kick in until the late 1980s, unless they purchased an individual policy.
I'm so sorry to read your story. This would have been a severe blow to your self-esteem. Nevertheless, you kept living through it all. I want to say that I always look for your funnies and other posts. You're strong and still useful!!!

Thank you, that's very sweet of you.
I was also living overseas 28 years ago, and yes, we got no super or pension. But, in the latter years of my marriage, I was also the breadwinner!

 

[Gunjo]

Oh yes, and what if you are volunteering especially in a council run place where volunteers are treated as unpaid labour earning money for council which goings in their coffers. Our cost of living is just as high but no bonus for us.

 

[mOiOz]

Hi All, i would like to say That i believe its Very Very wrong & Misleading that you guys are advertising that Seniors can get Hospital & Extra cover for $3.39 PER WEEK on the top of the page i first opened today, the add is a Goldy Colour & has the Government Emblem in the top left hand corner. So as soon as you click on this it goes straight to Compare Club Add, then one of the first things you see are get covered for just $24 something p.w.. If i can get Hospital & Extras COVER FOR THAT AMOUNT I WILL SIGN UP IMMEDIATELY .
I SEE THAT AS FALSE ADVERTISING...Is there not laws against that behavior, especially aimed at Seniors.
Stop this B.S. & BE CAREFUL WHAT FACTS YOU SUPPORT, I have taken a photo of this and i will try to print this page out for further reference...Shame on you

I'm pretty sure it was, $3,39 per DAY.
There may be a one-time slip-up when it was mistakenly printed WEEK instead of DAY.
If you calculate it as DAY, the total week is $24.

 

[mOiOz]

I am 81 years old and when I started work there was no super to add to my retirement. Spent 18 years in the Defence Force and got bugger all out of that. Now they want me to go back to work to get 4 grand. They must be joking.

Thank you for your service Ronloby!

 

[mOiOz]

I will never uderstand why renting out is off the list!
If the government had any brains, they should give rentals, such as rooms or sharehouses, priority!
It would help fund homeowners, who are often elderly and lonely, as well as give the homeless a place to live during this housing crisis.
Just bear in mind, the more rentals the lower the price.

 

[Yeshewa]

I for one am very grateful for the Work Bonus….im 75 and I’ve been working a few hours a week for the last 3yrs….i have no Superannuation and very little savings, however I own my own home which is such a blessing. The Work Bonus has enabled me to pay for a couple of non life threatening issues that have come up over the last 2yrs. I couldn’t have saved enough on my pension for these small yet quite expensive ops.
My general health is good and quite frankly I enjoy getting out for these few hours a week, plus I’m earning extra money and feeling productive…for me it means that I don’t lose any of my pension, and with very careful handling I get to live a whole lot better than I did before…for me personally it’s been so good to be able to do these few hours a week…

 

[mylittletibbies]

Anyone serving under 20 years only gets back what they put in DFRDB..you have to have 20 plus years to receive a pension and it's classified as income and have to pay tax.

I realise that, I worked for the Army in Puckapunyal many years ago.
But DFRB is the same as superannuation.
You contribute to it,but so does the armed services, this is invested and when you delist you receive this amount in a lump sum, although you don't receive an actual pension unless you have done 20 years service.
Unless I misunderstood I thought
@Ronlobby said he got nothing.

 

[mylittletibbies]

It is $433/wk or as a couple $45kpa tax free, not sure what makes one think they deserve more, to assume paying taxes and that they would just sit there waiting for U to retire while using the services they provided you with is just laughable. The Age pension was only ever a stop gap for people who could not support themselves post-retirement, but the onus was always on the individual not the Govt./taxpayer, I'm 77.

When the age pension was originally bought in it was decided that a 7.5% levy would be paid towards this, what they classed "welfare system". More or less as we pay a Medicare levy these days.
Years later when this system was changed and the funds became internal revenue this 7.5% levy still continued leading to the understandable belief that your pension is an entitlement.
Other countries, including NZ, pay a non means tested pension to all citizens irregardless of what assets they have or how much income they currently earn.

As Australia means tests everybody, which excludes a large proportion of people from getting any pension at all and many more only getting part payments it would seem to me that they should at least pay the people who are getting a full pension (which doesn't include me) a decent liveable amount

Politicians have no qualms about setting themselves up with very cushy superannuation and retirement benefits, despite sometimes only having served a very limited number of years in parliamentary service.

It's about time they looked after their constituents and spent less time on lining their own back pockets.



.

 

[Oakboy21]

I am 80 years old now and I still work 4 to 6 hours a day most week days. I have been reporting my income to Centrelink every 2 weeks for 15 years now. I still cannot work out how the Work Bonus is applied. At the end of most reporting conversations the voice says 'you now have zero hours in your Work Bonus'. Am I receiving any benefit from it?

 

[Viellarde]

I for one am very grateful for the Work Bonus….im 75 and I’ve been working a few hours a week for the last 3yrs….i have no Superannuation and very little savings, however I own my own home which is such a blessing. The Work Bonus has enabled me to pay for a couple of non life threatening issues that have come up over the last 2yrs. I couldn’t have saved enough on my pension for these small yet quite expensive ops.
My general health is good and quite frankly I enjoy getting out for these few hours a week, plus I’m earning extra money and feeling productive…for me it means that I don’t lose any of my pension, and with very careful handling I get to live a whole lot better than I did before…for me personally it’s been so good to be able to do these few hours a week…

Good to hear a positive take on this matter. Bravo.