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.

 

[AnnaGma]

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

 

[Motherness Always]

Wow that is nice... but I myself.. 62 working full time - yes 38hrs a week... I get nothing from the government.. even every budget handed down.. nothing.. Child care rebates - doesnt affect me.. cant afford health cover, way to expensive.. lucky i have a mortgage.. but us citizens over the age of 60 are always forgotten about.. and extra $4k would be so nice.. but by the time I get to retirement age.. i have to live off my super (which literally only started when i was 40).. so have to have my house paid off in the next 5 years - fingers crossed or I am stuffed. Oh well I just keep plodding along.. maybe one day (to win Lotto)

 

[Viellarde]

For seniors claiming the pension for the first time, Centrelink will automatically give them a Work Bonus of $4,000.
Does that mean those of us who are already on the pension don’t get it, or is it worded wrongly

I understand it to be for those who continue some form of paid employment after the age of 67.

 

[Jendiva]

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.

Some of my friends have had the good fortune to be able to save their super over their working life (realistically, not 60 years). Many people have not had this advantage. Life issues tend to disrupt efforts at saving enough.

 

[Packo]

HI IT WOULD BE NICE THAT ALL PENSIONERS GOT ARISE I AM DISABLE I CANNOT WORK I COULD USE THE MONEY AS WELL L;IKE EVERYBODY ELSE.

 

[Vet543]

I called Centrelink this morning to get clarification of these payments, please don't rely on anything you hear on the internet, without first investigating the veracity of these rumours.

Welll? What was the outcome/result From the phone call you made?
Surely it is not a secret?

 

[Brian999]

Welll? What was the outcome/result From the phone call you made?
Surely it is not a secret?

All of these claims about the money are false.

 

[mylittletibbies]

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

I have always thought the same.
It would encourage more people to take up part time work if they wanted to. Instead of being penalised and not to mention the hassle of having to report your earnings.
The bonus for the government would be they would need a lot less staff, saving a fortune on wages and paperwork.
No more stuff ups where they make mistakes in the amount they have to pay then more staff hours to work out what went wrong and chasing people to pay back money from errors that weren't their fault. And then the government also collect taxes on the wages.
Sounds like a win/win to me.

All of these claims about the money are false.

These claims are on the internet just about every day .for varying amounts, they are all a scam.
Don't believe them and don't click to read them. My neighbour got a virus in her computer after clicking on one of these ads.
If we are to get anything from Centrelink, don't hold your breath, we will be advised through the appropriate channels and not a random internet notice.

 

[Vet543]

I called Centrelink this morning to get clarification of these payments, please don't rely on anything you hear on the internet, without first investigating the veracity of these rumours.

What ws the result /or outcome of the call?
Surely it is not secret?

 

[Douglas1934]

How many retired people are able to work. Albo keeps pushing this B/S about how good it is but we, the ordinary retiree gets NOTHING. We are already below the poverty line. Well we are now under a commo government.

 

[Annie Mac]

My husband and I planned for our pension, which is our only income....we made sure the house was fully paid for years ago , before we went on the pension, and we have a reasonably new car.Without those two payments hanging over our heads, we manage. Our credit cards have a $500 limit.
Only clothes that are needed, are bought.
Each Christmas our families give us meat vouchers which enable us to buy meat which lasts us for a year.
Visits to the theatre and shows are non- existant.
Rates, insurances etc are all debited each fortnight.
I realise how lucky we are, but feel very sorry for anyone on a single pension who has to pay rent, I do not know how they can manage.
Those on a single pension paying rent should receive more money.
I would love to see a politician living on a pensioner's payment for a month, paying rent etc. but I don't think any of them would have the cajones!

 

[mOiOz]

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.

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!

 

[Ronloby]

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.

 

[mylittletibbies]

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.

18 years in the Defence Force should have given you a reasonable amount of DFRB (Defence Force Retirement Benefit)???

 

[laingy]

This is not to get pensioners back to work, but allow those who do want to work the possibility. It is not a good look and imo envy that drives someone to criticise others good fortune, when we know how tough the first home buyers have it. I think the $44kpa a couple receive is an adequate return on taxes paid but do acknowledge some will never think it's enough. Those who are struggling, with some exceptions have probably done so their whole life, blaming everyone else imo.

It's a total socialist attitude - for those of us who have studied, applied learnt skills, lived conservatively are just totally forgotten. May as well spend, spend, spend & then get rewarded. Socialism stifles incentives & reduces everyone to l the lowest level - good on ya Albo.

 

[Chicky]

Very true - even overseas students are supported with a $1000 bonus.

I have only been told this but people who have had the pension in this country still get a pension when the leave and also get a pension from the country they are living in now . If true it's so wrong.

 

[Daibhin]

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.

So why the taxes, is it only so politicians can get a great salary and some a life pension while continuing to work?

This is to cause exactly what's happening from this article bringing a dividing line between those who may have been able to be in a well-paying job and those who couldn't, or those whose husbands left them with a tidy nest egg. I know quite a few ladies who never worked outside the home after marriage but were left enough from their husbands years of working to live very comfortably. I do not envy those women, some had rather nasty husbands and deserve to have a good life on the husband's savings or super.

Some of you seem to forget there were pensions before super was thought of. Also, politicians salary used to be more in line with ordinary wages but the world has gone money mad. Money does not make one a better person, it's what you do with it or, what you do to others. So much has changed around wealth and owning things that are often not needed but bought for the prestige some people feel it gives them.

Now we have religions built on becoming wealthy! Which person of wealth thought that one up in order to be looked up to instead of being just damn greedy and hoarding money.

For a person with many $billions to give away a million, knowing it will be made up again in a week is giving very little when compared to the person who has very little but gives what they can to charities is actually much greater.

 

[Jimbo65]

What about volunteer work do they get it or not i just to find out because I'm 66 thanks

 

[mylittletibbies]

I have only been told this but people who have had the pension in this country still get a pension when the leave and also get a pension from the country they are living in now . If true it's so wrong.

Other way around I think.
My mother in law received a part pension here and part from Italy.
People from other countries are entitled to a pension based on how long they worked for in their home country and how much they paid in taxes.
They are then entitled to the pension here and this is also based on how long they have been here and is reduced accordingly.
However pensioners who move from here to other places.such as Bali, Thailand etc to make their pensions stretch further, as it is much cheaper to live there, do not get any additional payments from other countries.

 

[Auswallaby]

18 years in the Defence Force should have given you a reasonable amount of DFRB (Defence Force Retirement Benefit)???

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.