The Work Bonus is an initiative by Centrelink designed to encourage older Australians to remain in the workforce by allowing them to earn additional income without reducing their pension payments. In 2025, this scheme continues to provide significant benefits to eligible pensioners.
Key Features of the Work Bonus
- Fortnightly Exemption: The first $300 of employment income earned in a fortnight is excluded from the income test.
- Work Bonus Balance: Any unused portion of the $300 exemption accumulates in a Bonus balance, up to a maximum of $11,800.
- One-Off Boost: New recipients of eligible pensions receive an automatic $4,000 credit to their Work Bonus balance upon commencement.
Eligibility Criteria
To benefit from the Bonus, individuals must:
- Be over Age Pension age (currently 67 years).
- Receive one of the following payments:
- Age Pension
- Disability Support Pension
- Carer Payment
It’s important to note that the Work Bonus does not apply to recipients of the transitional rate of pension.
How the Work Bonus Works
The Bonus reduces the amount of employment income assessed under the pension income test, allowing pensioners to earn more without affecting their payments.
Example Scenario
A pensioner with a Working Bonus balance of $7,900 returns to work after six months and earns $750 in a fortnight.
- $300 is automatically exempted under the fortnightly Bonus.
- The remaining $450 is offset against the Work Bonus balance, reducing it to $7,450.
- The pension payment remains unaffected until the Bonus balance is depleted.
Income Thresholds
The Working Bonus is in addition to the pension income test free area.
| Pensioner Status | Income Test Free Area | Bonus Exemption | Total Fortnightly Income Without Pension Reduction |
|---|---|---|---|
| Single | $212 | $300 | $512 |
| Couple (combined) | $372 | $600 | $972 |
This means a single pensioner can earn up to $512 per fortnight, and a couple can earn up to $972 combined per fortnight, without any reduction in their pension payments.
The Centrelink Bonus for work offers a valuable opportunity for pensioners to supplement their income without compromising their pension benefits.
With the addition of a $4,000 one-off boost for new recipients in 2025, eligible Australians are better positioned to engage in the workforce while maintaining financial stability.
Understanding and utilizing the Work Bonus can lead to a more comfortable and secure retirement.
FAQs
Do I need to apply for the Work Bonus?
No, the Bonus is automatically applied if you meet the eligibility criteria.
What types of income are eligible for the Work Bonus?
Income from employment and self-employment is eligible. However, income from investments or rental properties is not.
Can the Work Bonus balance be transferred between partners?
No, each individual has their own Working Bonus balance, and it cannot be transferred to a partner.