Will you get a pension boost? Parliament is introducing a change for aged and veteran income thresholds!
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Australian pensioners could soon have extra money in their pockets if new legislation being introduced this week is passed.
In an effort to get more seniors and veterans into the workforce, the government is proposing changes to how much pension recipients can earn before their payments are reduced. But what does it all mean?
At the moment, the income threshold sits at $7,800 per year. This means once pensioners earn above this amount from work, their pension payments start to reduce.
Last month, the government introduced the Work Bonus Program. This temporarily increases the amount an eligible pensioner can earn from work before it affects their pension rate. The first $300 in their fortnightly income will not be counted under the pension income test.
Under the program, pensioners could earn a one-off, temporary credit of $4,000 in their Work Bonus income balances from December 1, 2022, to December 31, 2023, before their payments are impacted.
This means that the threshold increased from $7,800 per year to $11,800.
Now, the Albanese government is introducing a bill on Wednesday, October 18, to make this change a permanent one. The measure will cost $42.4 million over the next four years.
If passed, new and existing pension recipients will have a starting income credit of $4,000.
Services Australia released a video about this program, which you can watch here:
According to the Minister for Families and Social Services, Amanda Rishworth, 'Many older Australians are choosing to supplement their Age Pension with paid work, and good on them.'
She added: ‘We need to make sure that the system is incentivising older Australians to work if they want to. No one should be financially disadvantaged by staying in the workforce longer or returning to the workforce after some time away.’
For pensioners, this change means more opportunities to increase income from part-time work without losing their pension payments.
For example, John Smith is an age pensioner who works as a school crossing supervisor for $400 a fortnight. He has no other income. Under the Work Bonus Program, the first $300 of his income is not assessed, and only $100 is counted under the pension income test.
This is less than the pension income-free area of $204 a fortnight for a single pensioner, so John Smith will still receive his maximum rate of Age Pension.
Several senior groups, veteran advocates and employer organisations have championed for this policy even before the Jobs and Skills Summit in September.
You can learn more about the Work Bonus program in this article or visit the Department of Social Services website.
You may also visit a Centrelink office in person or call Services Australia at 13 2300.
If you need more information, 7News also covered this story here:
If you’re keen to take advantage of the Work Bonus program and look for a part-time job, our member @Alan G. shared a guide on securing one. You can read his article here.
What are your thoughts on this, members? What concerns do you have about the changes? We'd love to read your stories in the comments below.
In an effort to get more seniors and veterans into the workforce, the government is proposing changes to how much pension recipients can earn before their payments are reduced. But what does it all mean?
At the moment, the income threshold sits at $7,800 per year. This means once pensioners earn above this amount from work, their pension payments start to reduce.
Last month, the government introduced the Work Bonus Program. This temporarily increases the amount an eligible pensioner can earn from work before it affects their pension rate. The first $300 in their fortnightly income will not be counted under the pension income test.
The Work Bonus Program increases the amount an eligible pensioner can earn from work before it affects their pension rate. Credit: Andrea Piacquadio/Pexels
Under the program, pensioners could earn a one-off, temporary credit of $4,000 in their Work Bonus income balances from December 1, 2022, to December 31, 2023, before their payments are impacted.
This means that the threshold increased from $7,800 per year to $11,800.
Now, the Albanese government is introducing a bill on Wednesday, October 18, to make this change a permanent one. The measure will cost $42.4 million over the next four years.
If passed, new and existing pension recipients will have a starting income credit of $4,000.
Services Australia released a video about this program, which you can watch here:
According to the Minister for Families and Social Services, Amanda Rishworth, 'Many older Australians are choosing to supplement their Age Pension with paid work, and good on them.'
She added: ‘We need to make sure that the system is incentivising older Australians to work if they want to. No one should be financially disadvantaged by staying in the workforce longer or returning to the workforce after some time away.’
For pensioners, this change means more opportunities to increase income from part-time work without losing their pension payments.
For example, John Smith is an age pensioner who works as a school crossing supervisor for $400 a fortnight. He has no other income. Under the Work Bonus Program, the first $300 of his income is not assessed, and only $100 is counted under the pension income test.
This is less than the pension income-free area of $204 a fortnight for a single pensioner, so John Smith will still receive his maximum rate of Age Pension.
Several senior groups, veteran advocates and employer organisations have championed for this policy even before the Jobs and Skills Summit in September.
You can learn more about the Work Bonus program in this article or visit the Department of Social Services website.
You may also visit a Centrelink office in person or call Services Australia at 13 2300.
If you need more information, 7News also covered this story here:
If you’re keen to take advantage of the Work Bonus program and look for a part-time job, our member @Alan G. shared a guide on securing one. You can read his article here.
What are your thoughts on this, members? What concerns do you have about the changes? We'd love to read your stories in the comments below.
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