There was some good news for pensioners in Parliament this week after the Lower House passed draft legislation that will allow pensioners to earn more money before their payments begin to reduce.
According to the changes, which are yet to pass the Upper House, those in receipt of the Age Pension will be able to earn a higher sum per fortnight before their pension is affected as the Work Bonus is set to rise from $250 to $300.
On Thursday, Minister for Social Services Paul Fletcher said that around 90,000 pensioners should receive an increase in their payments from July 1.
“Our Liberal National Government is able to deliver more support to retirees, thanks to our strong economy and prudent management of the Budget,” Fletcher said in a statement.
The proposal, which was first announced in last year’s federal budget, cleared the House of Representatives on Wednesday alongside two other measures – means testing pooled-retirement-income products and allowing more older Australians to access the pension loan scheme – predicted to cost the government $258 million overall according to AAP, via The Australian.
Currently, the Age Pension’s income test permits pensioners to earn no more than $172 per fortnight before their pension payments are impacted, according to the Department of Human Services’ website. While couples can take home $304 a fortnight (combined) before incurring any reductions.
However, pensioners are also able to claim the Work Bonus from Centrelink, which raises the amount pension claimants can earn, without incurring any loss to their pensions, to $250 per fortnight. It is this element which will change under the bill that passed in Parliament yesterday.
To apply for the Work Bonus, pensioners must apply online through their myGov account or by visiting their local Centrelink office, and they are also required to report to Centrelink on a fortnightly basis detailing how much extra income they earned.
Fletcher also introduced another bill on Wednesday, ensuring that the Age Pension is no longer paid to Australian pensioners who live abroad after they have passed away.
“Australia is a multicultural country, with around one-third of Australians born overseas and over half of Australians with at least one parent born overseas,” Fletcher told the house.
“The government recognises that many people wish to return to their country of birth or to be with family and friends at a later stage in life. Therefore, it is not unreasonable to expect a large number of Australian pensioners to retire overseas.”
From July 1, 2019, pensioners who live abroad and are over the age of 80 will now be required to complete and return a proof-of-life certificate to ensure their payments are not stopped, with around 24,900 people expected to have to prove they are still alive when the legislation comes into effect later this year.
The minister also confirmed that Australia currently pays out pensions to approximately 96,000 pensioners who now reside overseas, with international social security agreements in place with 31 countries.