What is the Work Bonus?
The Work Bonus is a concession designed to allow pensioners to keep more of their pension payment while working and earning income. It basically reduces the amount of your income that gets assessed using the income test by Centrelink.
You may qualify for the Work Bonus if you meet all of the below criteria:
- you’ve reached Age Pension age,
- you get the Age Pension, Carer Payment or Disability Support Pension,
- you aren’t getting the transitional rate of pension.
If you’re eligible, the Work Bonus will automatically kick in, so you don't need to apply for it separately. The Work Bonus applies to income from both employment and self-employment.
How does Work Bonus work?
Every fortnight, you get $300 of Work Bonus, which will offset your assessable income for those 2 weeks. Any unused Work Bonus is accrued, up to a maximum amount of $7,800, so it can be used to offset future income.
- If you earn $300 or less in one fortnight, your income won’t affect your pension payment for that fortnight.
- If you earn more than $300 in one fortnight, any accrued Work Bonus balance will be used. The remaining income amount will be assessed using the income test.
For example, let's say you’re a single person earning $300 per fortnight from a part-time job. Without the Work Bonus, every dollar would be assessed as income, and this could reduce your pension payment. But with the Work Bonus, it reduces your assessable income to $0, allowing you to keep all of your pension payment for that fortnight.