How you can boost your income without jeopardising your Age Pension

Retirees, rejoice! A golden opportunity has emerged for those over the Age Pension age to earn more without worrying about the impact on their pension payments.

The key lies in the Work Bonus, a support system designed to reward and encourage pensioners who choose to stay active in the workforce.

The Work Bonus increases the amount you can earn from work before it affects your pension rate. The first $300 of fortnightly income from work is not counted under the pension income test, providing a financial cushion for those dipping their toes back into the workforce.

For single pensioners, the pension income free area is $204 a fortnight and for couples combined, it is $360 a fortnight. With the Work Bonus, this means you could potentially earn up to $504 a fortnight from work and still receive the maximum rate of pension. It’s a financial safety net that allows you to explore opportunities without the fear of losing essential support.

But that’s not all – those over Age Pension age can also accumulate any unused part of the $300 fortnightly Work Bonus in a special income bank. This income bank, with a maximum amount of $11,800, acts as a buffer, offsetting future income from work that would otherwise be assessable under the pension income test. The best part? It’s not time-limited and carries forward, even across years.

It’s important to note that the Work Bonus is applicable to all pensioners over Age Pension age, including recipients of Age Pension, Carer Payment, Disability Support Pension, Department of Veterans’ Affairs Service Pensioners, and Income Support Supplement recipients over qualifying age.

There’s no need to jump through hoops either, with no need to apply for the Work Bonus, instead simply keep Services Australia (Centrelink) informed of your income through various channels, including in-person visits, phone calls, or online reporting.

Minister for Social Services Amanda Rishworth previously said the Work Bonus would help to remove barriers often faced by those looking to re-enter the workforce, particularly those looking to take up short-term, casual and gig economy work.

“Many older Australians are choosing to supplement their Age Pension with paid work – and good on them,” Rishworth said.

“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.”

IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.