A bonus for working seniors
The Work Bonus provides an incentive for senior pensioners to participate in the workforce by disregarding half of the first $500 of their fortnightly gross employment income from the income test.
Therefore, if you earn $300 per fortnight, Centrelink uses $150 in your income test calculation. If you earn $700 per fortnight, Centrelink uses $450 in your income test calculation. The income test still also includes the normal allowable income free threshold.
To receive the Work Bonus you must be over age pension age and receiving:
• Age Pension
• Carer Payment
• Bereavement Allowance
• Disability Support Pension
• Widow B Pension, or
• Wife Pension.
Alternatively, you can be over the Department of Veterans’ Affairs (DVA) service pension age and receiving:
• DVA Service Pension
• DVA Partner Service Pension, or
• DVA Income Support Supplement.
The Work Bonus applies to salary, wages, commissions and leave payments from your current employer. It does not apply to leave payments paid out on termination, investments, superannuation income or payments to a principal from sole traders or partnerships.