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.

 

[Klaus A]

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?

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?

The tax free threshold for single pensioner is $32,279. It includes your pension.

 

[mylittletibbies]

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 anotherpaid job

Of course not, it's one rule for them and a different one for the rest of us.
It's quite disgusting really.
Look at our recently retired Premier here in WA. He was supposedly sooooo tired and worn out he couldn't carry one, but within a few months he has pulled on 4 more consultancy jobs
Good one Mark, don't know how you can look at yourself in the mirror. You and all your crooked cronies.
Wonder if they ever spare a thought for the pensioners who are expected to survive below the poverty line, while they wallow in their millions.

 

[stillyoung]

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

Sounds like you're a "glass half empty" type person.

 

[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?

Stina, maybe you'd like to share with the rest of us what you do. If you have four people employing you there must be a lot more out there looking to employ us.
Your "what's your problem" comment wasn't necessary. There are many people out there with a myriad of different problems, you are very lucky if you are not one.
Be grateful, no need for snipey comments.

 

[mylittletibbies]

Sounds like you're a "glass half empty" type person.

IMO, I think she's just telling it how it is. Very few employers want to employ seniors. There are a few, but they are in the minority.

 

[mylittletibbies]

Stina, maybe you'd like to share with the rest of us what you do. If you have four people employing you there must be a lot more out there looking to employ us.
Your "what's your problem" comment wasn't necessary. There are many people out there with a myriad of different problems, you are very lucky if you are not one.
Be grateful, no need for snipey comments.

Sorry Stina, I meant my comments for Tiara

 

[fokesy50]

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.

I’m 73 and I work 20 hours a fortnight and I earn $656 and it doesn’t affect my pension. I’m just cleaning an office 2 hours each morning Monday to Friday. So it’s definitely worth working.

 

[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.

How do you figure that. We get under $30,000 a year. Not too many of us are going to live long enough for it to ever cost the government a million dollars each.
What happens to this million dollars for those who pass in their 70s, 80s or even 90s, do they just leave it to their kids
Not to mention all the interest the government would loose on all those millions disappearing out of the coffers.
For that matter, they would probably have to add it to the countrys debt, so they'd be paying interest on all these multi millions for ever after.
Requires a rethink I think!!!

 

[Milica]

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

???

 

[Jolliffe]

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.

 

[Jolliffe]

How do you figure that. We get under $30,000 a year. Not too many of us are going to live long enough for it to ever cost the government a million dollars each.
What happens to this million dollars for those who pass in their 70s, 80s or even 90s, do they just leave it to their kids
Not to mention all the interest the government would loose on all those millions disappearing out of the coffers.
For that matter, they would probably have to add it to the countrys debt, so they'd be paying interest on all these multi millions for ever after.
Requires a rethink I think!!!

What about dissabilty pension don’t they deserve more to.

 

[stillyoung]

IMO, I think she's just telling it how it is. Very few employers want to employ seniors. There are a few, but they are in the minority.

This is purely a mindset thing. I see the situation totally opposite. There is an abundance of work out there for seniors, especially in this current economic climate. Opportunities abound. I find myself knocking back well paid work because I want to enjoy my somewhat semiretirement.
Take a look around any Bunnings store for instance. What percentage of floor staff are seniors?
And I just heard that the Grey Army are having a recruitment drive to encourage seniors back into the work force.
Just did a quick search and here are some results for those wishing to follow up:-

Senior Job Seekers| Jobs Available | Employment Australia

Senior Job Seekers, Jobs available, Employment Australia wide. Full-time jobs, Casual, Part-time work available senior workers in rural, remote, city areas.

www.seekingseniors.com.au

Older Workers

olderworkers.com.au

https://wiseemployment.com.au/jobs-for-older-people/

https://www.benext.com.au/the-mature-age-workforce-baby-boomers/

And here's some tips if you're serious about getting back into the work force:-

Work opportunities for seniors and over 50s workforce | Australian Seniors

With an ageing population in Australia, it’s more common for seniors to continue working later in life than in previous years. Here are some tips to find work opportunities in your retirement years.

www.seniors.com.au

The older work force are seen to be more reliable, stable in their lifestyle. Ie. No binge drinking on a Thursday night after being paid and coming into work with a hangover Friday morning!!
Older people can either make excuses or they can make it happen. Choice is theirs.

 

[PeeBo]

Please explain how this is going to cost an expected $42.4 million over the next four years. If you are going out earning, then that becomes taxable in part in the end, so that is money going into the government's coffers. Other than administration which is automatically calculated when you declare your earnings, I cannot see for the life of me how this is going to cost, other than whether it is a grammatical error and will infact cost pensioners this much.

 

[Jolliffe]

Yes

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 Yes that is exactly what they do plus trips overseas that tax’s pay for

 

[PeeBo]

How do you figure that. We get under $30,000 a year. Not too many of us are going to live long enough for it to ever cost the government a million dollars each.
What happens to this million dollars for those who pass in their 70s, 80s or even 90s, do they just leave it to their kids
Not to mention all the interest the government would loose on all those millions disappearing out of the coffers.
For that matter, they would probably have to add it to the countrys debt, so they'd be paying interest on all these multi millions for ever after.
Requires a rethink I think!!!

Not when you think about it logically, though it seems a lot it is a mere pittance in today's values. It does away with the millions spent on paperwork and staff, and extra office space housing new software to try and keep track. It would narrow the doorway for those that want to rort the system as it would be easier to police.
Social security is a rort on our taxes, is way overstaffed, and many people have a job title and do bugger all work, I have heard of staff members sitting at home playing the stock exchange or something similar because there is no work for them, but rules passed, stop them from being made redundant.

Not only does this allow a comfortable life for pensioners, but it would also better the economy with a cash injection of this proportion going into housing and other needs, putting money back into the coffers. Everyone benefits in the long run.

Oh! yes, definitely a rethink is needed.

How do you figure that. We get under $30,000 a year. Not too many of us are going to live long enough for it to ever cost the government a million dollars each.
What happens to this million dollars for those who pass in their 70s, 80s or even 90s, do they just leave it to their kids
Not to mention all the interest the government would loose on all those millions disappearing out of the coffers.
For that matter, they would probably have to add it to the countrys debt, so they'd be paying interest on all these multi millions for ever after.
Requires a rethink I think!!!

 

[Milica]

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.

With all due respect - that is not easy work - and at 73 even 63 it is not something everyone could do - this type of work is more for younger people and backpackers, that can pack up and go somewhere for 3 months at a time, that way they get to see places as well!

 

[mitchellowe]

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.

u keep saying older people can ean more money tax free or pensions will not change
Shouldnt you be doing something about the unemployed and single parents
After all when pension increases come around every 6 months The unemployed and single parents are treateb Better THan the aged population
SIT at home and we will increase the unemplyment rate %6 while pensioners%3
SIT at home and get pregnant and if udo we will increase your payments by %15
WHY IS IT THE AGED POPULATION ARE TREATED AS PEOPLE WORSE THAN PEOPLE WHO ARE LAZY OR PEOPLE WHO HAVE CHILDREN they cannot aford AND CAN ALSO DO NOTHING FOR 14 YEARS PER CHILD

 

[mylittletibbies]

Not when you think about it logically, though it seems a lot it is a mere pittance in today's values. It does away with the millions spent on paperwork and staff, and extra office space housing new software to try and keep track. It would narrow the doorway for those that want to rort the system as it would be easier to police.
Social security is a rort on our taxes, is way overstaffed, and many people have a job title and do bugger all work, I have heard of staff members sitting at home playing the stock exchange or something similar because there is no work for them, but rules passed, stop them from being made redundant.

Not only does this allow a comfortable life for pensioners, but it would also better the economy with a cash injection of this proportion going into housing and other needs, putting money back into the coffers. Everyone benefits in the long run.

Oh! yes, definitely a rethink is needed.

So all these Centrelink staff are sitting at home twiddling their thumbs, playing the stock exchange, etc. My niece is a supervisor at Centrelink, she cracked up when I told her that. She said that not only is that a load of crock but they are miles understaffed, that is why there are such long queues in Centrelink offices and you can wait over an hour to get someone to answer your call, that is if you're lucky enough not to get cut off in the meantime. She said whoever told you that has no idea what they are talking about .

A large percentage of people,and I don't mean all people, do not have their own home by retirement age because they are not good money managers and age will not make them such. There are people with gambling, drink, drug addictions, can you imagine what they would do with that much money, they would be back in no time with their hand out again.
You did not comment on my question about handing such large amounts of money to the large proportion of people who will pass away long before they would ever receive anywhere near that amount in pension.
So for every one thousand people who retire every year, the government will have to find one billion dollars, UP FRONT. Where are all these multi billion dollars going to come from?? From the WMF, I guess,
creating billions of dollars in interest payments .
All the money you say will be saved on Centrelink staff, who do you think is still going to handle all the other benefits which are much more complicated than the age pension.
My niece says that the age pension is by far the least amount of work. The bulk of pensioners do not try to rort the system.
I don't know what world you live in, but I don't think you would find many people to agree with you that a million dollars is a pittance these days.

 

[Petra]

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.

Don't you have superannuation?

 

[MRS PERKY]

Been waiting over 4 months for Centrelink to activate pension application.....not happy