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.

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.

Key Takeaways

• A new bill is being introduced to parliament that will allow aged and veteran pensioners to earn up to $300 per fortnight before it impacts their pension payments.
  
• The proposal includes an initiative where any unused portion of the $300 income credit is kept in a 'Work Bonus income bank' to offset future earnings.
  
• The measure is expected to cost $42.4 million over the next four years, and if passed, both new and existing pension recipients will start with an income credit of $4,000.
  
• The increase in the ability to earn more without impacting pensions has been advocated by senior groups, veteran advocates and employer organisations.
  

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.

 

[Melva Rice]

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.

View attachment 32494

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.

Key Takeaways

• A new bill is being introduced to parliament that will allow aged and veteran pensioners to earn up to $300 per fortnight before it impacts their pension payments.
• The proposal includes an initiative where any unused portion of the $300 income credit is kept in a 'Work Bonus income bank' to offset future earnings.
• The measure is expected to cost $42.4 million over the next four years, and if passed, both new and existing pension recipients will start with an income credit of $4,000.
• The increase in the ability to earn more without impacting pensions has been advocated by senior groups, veteran advocates and employer organisations.

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.

 

[Melva Rice]

I would like to know how this works out after tax. I have been told to be careful as, working and earning the extra will cause the pension to be taxable after the first eighteen thousand per year. The has resulted in some pensioners having a tax bill to pay off. If this is going to be the case folks will have to work out break even points, and with the extra tax being collected the Government may not be out of pocket as much as thought. Is this a case of give with one hand and take away with the other?

 

[Gsr]

I am soon dropping my work from three days a week to two days a week and hopefully this will mean the extra pension hubby and I should get will cover the loss of wages from me working less. I enjoy working but find the three days is just too much now I am starting to get arthritis in most of my joints. I have worked almost non stop for 55 years, with only a 3 year break when I had kids, so feel I have contributed enough and now need to step back and have more me time. A lot of years when my kids were young I worked part time around my husbands work so the kids always had mum or dad at home, this meant I often worked afternoon and night shifts, which were very tiring when I was looking after toddlers all day. Very little childcare in country areas back then, and we both wanted to spend as much time with our kids as we could and not farm them out to other people to look after.

 

[Self]

Self funded retirees getting nothing again.

 

[one2one]

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.

View attachment 32494

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.

Key Takeaways

• A new bill is being introduced to parliament that will allow aged and veteran pensioners to earn up to $300 per fortnight before it impacts their pension payments.
• The proposal includes an initiative where any unused portion of the $300 income credit is kept in a 'Work Bonus income bank' to offset future earnings.
• The measure is expected to cost $42.4 million over the next four years, and if passed, both new and existing pension recipients will start with an income credit of $4,000.
• The increase in the ability to earn more without impacting pensions has been advocated by senior groups, veteran advocates and employer organisations.

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.

This is such a conflated idea, just make it simple to your pension that as we have we have worked all of our lives, brought up our own kids and paid our taxes
why not just tax us on what we earn . Use the KISS principle KEEP IT SIMPLE STUPID..

 

[Colleen M]

Woopie,just have to find someone willing to employe a 63 year old.

 

[Stina]

Woopie,just have to find someone willing to employe a 63 year old.

And a 73 year old!

 

[PeeBo]

I am somewhat confused as I thought they had already changed it to 300 from 200 a while back. Whatever it is still too damned little for it to be viable and balance out the extra headache it causes.

What they should do is give every pensioner when they retire 1 million, this would benefit the economy, and pensioners could have a more comfortable lifestyle and the maturity to manage it properly. This would save the government and taxpayers a fortune.

 

[oilsfromoz]

Smoke and mirrors! This is the type of thing governments do to make themselves look like they're doing something. The reality is that very few pensioners will be able to take advantage of this "generous offer" because they won't get employed and will continue to go backwards under all the cost-of-living rises. The last pension increase was $50 a fortnight for a single pensioner while rents have risen by at least $50 a week for so many (if not more) not to mention food and power (where's the $275?). It's about time pensions were set at a realistic rate.

 

[Pat T]

And a 73 year old!

Maybe try room cleaning in caravan park or motel with accommodation thrown in, for 3 months at a time. They are desperate for workers. Have a holiday too.

 

[IAN3005]

As a 75, soon to be 76, what are my chances after a stroke and 3 heart attacks????
I'll give it a go.....

 

[Tiara]

Woopie,just have to find someone willing to employe a 63 year old.

 

[Tiara]

And a 73 year old!

Colleen M and Stina, I have 4 employers willingly employing me to work from home at 75 years of age. What's your problem?

 

[mylittletibbies]

I am somewhat confused as I thought they had already changed it to 300 from 200 a while back. Whatever it is still too damned little for it to be viable and balance out the extra headache it causes.

What they should do is give every pensioner when they retire 1 million, this would benefit the economy, and pensioners could have a more comfortable lifestyle and the maturity to manage it properly. This would save the government and taxpayers a fortune.

Unfortunately, age doesn't always bring maturity, especially where money is concerned
A neighbour of mine and her husband recently bought a new Rav4 on the never never and returned it 3 months later as they couldn't afford the payments. They are both in their late 70's and you would think they would have more sense, it cost them a fortune.
A lot of people would just take the million, blow it and then go running back to the government crying poor mouth.

 

[mylittletibbies]

Colleen M and Stina, I have 4 employers willingly employing me to work from home at 75 years of age. What's your problem?

Maybe they can't do whatever it is you're doing!!

 

[Timothy Mckenna]

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.

View attachment 32494

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.

Key Takeaways

• A new bill is being introduced to parliament that will allow aged and veteran pensioners to earn up to $300 per fortnight before it impacts their pension payments.
• The proposal includes an initiative where any unused portion of the $300 income credit is kept in a 'Work Bonus income bank' to offset future earnings.
• The measure is expected to cost $42.4 million over the next four years, and if passed, both new and existing pension recipients will start with an income credit of $4,000.
• The increase in the ability to earn more without impacting pensions has been advocated by senior groups, veteran advocates and employer organisations.

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.

About time I’m New Zealand they can work however many hours they want and just pay regular tax and not affect their pensions

 

[RascalsDragon]

I am soon dropping my work from three days a week to two days a week and hopefully this will mean the extra pension hubby and I should get will cover the loss of wages from me working less. I enjoy working but find the three days is just too much now I am starting to get arthritis in most of my joints. I have worked almost non stop for 55 years, with only a 3 year break when I had kids, so feel I have contributed enough and now need to step back and have more me time. A lot of years when my kids were young I worked part time around my husbands work so the kids always had mum or dad at home, this meant I often worked afternoon and night shifts, which were very tiring when I was looking after toddlers all day. Very little childcare in country areas back then, and we both wanted to spend as much time with our kids as we could and not farm them out to other people to look after.

What they aren’t telling you is that if you’re on the full pension and earn more than $10k a year you will be taxed on your pension. I worked to pay the rent, paid tax on what I earned and now they want another $3,500 in tax. BEWARE

 

[IAN3005]

What they aren’t telling you is that if you’re on the full pension and earn more than $10k a year you will be taxed on your pension. I worked to pay the rent, paid tax on what I earned and now they want another $3,500 in tax. BEWARE

Tax and I hope NO superannuation. You will lose 30-50% of what you earn.... unless you play the tax game

 

[ElizabethL]

Woopie,just have to find someone willing to employe a 63 year

About time I’m New Zealand they can work however many hours they want and just pay regular tax and not affect their pensions

Exactly. We pay regular tax plus lose our pension if the government think we earn too much. I wonder if the politicians lose their pension when they retire and then go on to another paid job