Work Bonus

The Work Bonus is an incentive for pensioners of age pension age to remain in the workforce. Changes introduced on 1 July 2011 further improve the Work Bonus.

You are now able keep more of your income, or work for short periods with little or no affect on your pension.

How this works is:

• The first $250 of employment income you earn each fortnight is disregarded and not counted as income (previously it was half of your first $500)
• Any unused amount (if you earn between zero and $250 in a single fortnight) is now added to your Work Bonus balance, which can accumulate to $6500
• Your Work Bonus balance starts from zero in July 2011
• Your Work Bonus balance is used to offset any future employment income you earn in a single fortnight above $250 – for example if one of the only times you work each year is casually in December as a Santa Claus.

To explain what this change means for you, a question and answer section has been prepared below:

Question: I am an age pensioner and I do some part-time work. What do I have to do to get the Work Bonus?

Answer: You do not need to apply for the Work Bonus but you need to keep Centrelink up to date with your earnings. We can only apply the bonus when we know your earnings amount.

Question: What kind of income will the Work Bonus apply to?

Answer: The Work Bonus will apply to employment income such as wages, director's fees, and leave taken while you are still employed. It will not apply to other income such as leave paid out on termination, investments, superannuation, or payments to a principal from a sole trader or partnership.

Question: My partner is not on the pension and is still working. Will their earnings also get the Work Bonus when calculating my pension?

Answer: No. Your partner’s earnings will only attract the Work Bonus if they are over age pension age and receiving a pension. In every other case the earnings will be treated as they are now.

Question: My partner and I are both on the Age Pension and my partner has a part-time job. Will their earnings be discounted in the calculation of both pensions, or just their pension?

Answer: The Work Bonus will reduce your partner’s assessable income. Your incomes (including your partner’s income after the Work Bonus is taken into account) will be combined, and halved in the normal way to calculate the rate of pension you are eligible for. Therefore, you will receive the same benefit from the change.

More information

• Read the Work Bonus factsheet
• Watch a short video on the Work Bonus improvements
• Call Centrelink’s Seniors line on 13 2300