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.

 

[Ezzy]

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!

So much truth in your words & l am sure other members here can attest to the fact their working life has been cut short for an unexpected reason or reasons, & l include myself.

In 1995 at age 47 with no Super, a home mortgage & with children at home still, l was forced out of the workforce & onto a DSP when l was told from within my workgroup that l was no longer able to do that type of work due to numerous work related injuries on the job. Attempts to transfer to lighter work were fruitless & l was shown the door & voluntary retirement, which didn't by that stage equate to 'X number of weeks wages for years of service' as had been the case only months earlier.

I tried working for a Real Estate Agent who later turned out to be very scrupulous to his staff, tenants & sub-contractors (which l was), withheld a large sum of $'s for no reason & through a lost law suite, lost around $10,000 in total. The breakdown which followed took years of counselling & hospitalization to recover. I have never done such work since, had numerous operations including to some body joints weakened by previous work duties.

At 73 my cessation from the workforce has been lengthy, unplanned & a struggle. As you stated mOiOz, NOT EVERYONE HAS HAD TIME TO PLAN THEIR RETIREMENT!!

I admit to having a giggle at your joke about working on Mummy's nerves & l did wonder about the ensuing comment. The remarks to your other comment are definitely not what we like to read here & possibly an indication of some members insensitivety or indication of intention to cause ire to other members, & there appear to be a few on this forum. Those members' comments l bypass.

Member @mOiOz, you have my sympathy for all things mentioned here. You have laid yourself bare once more on this forum & l hope members will accept your statement as an honest example of how hard it can be to plan, work & save for retirement. [I once heard of a gent working for the same employer as me dying on the job, & not through a work injury. No time to plan his retirement]. Thank you for your jokes, which l follow, & for your comments.

 

[mOiOz]

So much truth in your words & l am sure other members here can attest to the fact their working life has been cut short for an unexpected reason or reasons, & l include myself.

In 1995 at age 47 with no Super, a home mortgage & with children at home still, l was forced out of the workforce & onto a DSP when l was told from within my workgroup that l was no longer able to do that type of work due to numerous work related injuries on the job. Attempts to transfer to lighter work were fruitless & l was shown the door & voluntary retirement, which didn't by that stage equate to 'X number of weeks wages for years of service' as had been the case only months earlier.

I tried working for a Real Estate Agent who later turned out to be very scrupulous to his staff, tenants & sub-contractors (which l was), withheld a large sum of $'s for no reason & through a lost law suite, lost around $10,000 in total. The breakdown which followed took years of counselling & hospitalization to recover. I have never done such work since, had numerous operations including to some body joints weakened by previous work duties.

At 73 my cessation from the workforce has been lengthy, unplanned & a struggle. As you stated mOiOz, NOT EVERYONE HAS HAD TIME TO PLAN THEIR RETIREMENT!!

I admit to having a giggle at your joke about working on Mummy's nerves & l did wonder about the ensuing comment. The remarks to your other comment are definitely not what we like to read here & possibly an indication of some members insensitivety or indication of intention to cause ire to other members, & there appear to be a few on this forum. Those members' comments l bypass.

Member @mOiOz, you have my sympathy for all things mentioned here. You have laid yourself bare once more on this forum & l hope members will accept your statement as an honest example of how hard it can be to plan, work & save for retirement. [I once heard of a gent working for the same employer as me dying on the job, & not through a work injury. No time to plan his retirement]. Thank you for your jokes, which l follow, & for your comments.

Really sorry to hear and totally understand.
I tend to wear my heart on my sleeve - because I have nothing to hide...
They say these things "make you strong" - yes, they do in one way, but other 'parts' of you have to give up to support them and sadly, we need them all...
Thanks for the support, you always have mine! xxx

 

[Franka]

I am now 81 and stopped working part time when I was 79. I do not have the energy anymore to work at a part time position. Why can't this extra be added to my pension as I am now a carer for my husband who has Parkinson's? Being a carer is a full time job.

 

[Ezzy]

Really sorry to hear and totally understand.
I tend to wear my heart on my sleeve - because I have nothing to hide...
They say these things "make you strong" - yes, they do in one way, but other 'parts' of you have to give up to support them and sadly, we need them all...
Thanks for the support, you always have mine! xxx

Thankyou for your reply. Your statement rings true with me. Please keep doing what you do so well here. xx