The Work Bonus Scheme is designed to help pensioners keep more of their pension while still earning an income. If you’re of Age Pension age and receive an eligible payment, this scheme can reduce the amount of employment income counted towards the pension income test. This means you can work, earn, and still receive pension benefits without being penalized as much.
Table of Contents
Who Can Get the Work Bonus?
To qualify for the Work Bonus, you must be of Age Pension age and receive one of the following payments:
✔ Age Pension
✔ Carer Payment (subject to regular work rules for Carer Payment recipients)
✔ Disability Support Pension (only if you meet the work requirements for this payment)
Who Isn’t Eligible?
❌ Transitional rate pensioners are not eligible for the Work Bonus.
💡 Tip: You can check your Work Bonus balance anytime using your Centrelink online account through myGov.
Australia Pension Card 2025: Eligibility, Benefits, and How to Claim – Everything You Need to Know
Pension Supplement 2025: Who’s Eligible, How Much You Get & Payment Updates
Australia Pension Bonus Top-Up 2025: A Boost for Eligible Retirees
New Rules for the Commonwealth Seniors Health Card (CSHC) in 2025
$100 Centrelink Cash Boost Available for Aussie Parents: How to Apply for State-Specific Vouchers
What Is the Work Bonus & How Does It Work?
The Work Bonus Scheme helps reduce the impact of your employment income on your pension. Here’s how it works:
✅ Offsets part of your work income in the pension income test
✅ Allows you to earn more without losing as much of your pension
✅ Automatically applied—no need to apply separately
The Work Bonus balance accumulates over time and acts as a buffer to reduce the effect of your earnings on your pension.
What Type of Income Qualifies for the Work Bonus?
The Work Bonus applies to employment income, which includes:
✔ Wages or salary
✔ Income from casual, part-time, or full-time work
✔ Self-employment income (with some restrictions)
❌ Excluded Income: The Work Bonus does not apply to investment income, rental income, superannuation withdrawals, or passive earnings.
How Your Work Bonus Balance Works
Think of your Work Bonus balance as a savings account that offsets your employment income.
How It Builds Up
✔ Every fortnight, you accrue $300 to your Work Bonus balance
✔ Your balance can accumulate up to a maximum of $11,800
✔ When you start earning, the balance is used to offset your income in the pension income test
💡 Example:
If you earn $500 in a fortnight, the Work Bonus will offset $300, meaning only $200 counts towards the pension income test.
How to Check Your Work Bonus Balance Online
If your Centrelink account is linked to myGov, you can check your Work Bonus balance in a few simple steps:
1️⃣ Sign in to myGov
2️⃣ Go to Payments and Claims
3️⃣ Click on My Payments
4️⃣ Your Work Bonus balance will be displayed
How Your Work Bonus Starts & One-Time Boosts
Your starting balance depends on when you submit your claim for an eligible payment.
Claims Before 1 July 2024
✔ If you lodged a claim between 1 December 2022 and 30 June 2024, you get a one-time $4,000 boost to your Work Bonus balance (if you haven’t received one before).
✔ Your total Work Bonus balance cannot exceed $11,800.
Claims After 1 July 2024
✔ If you’re claiming an eligible payment for the first time, you’ll start with a Work Bonus balance of $4,000.
✔ If you’re re-claiming a payment, any existing Work Bonus balance carries over.
✔ If your balance is below $4,000, you may receive a top-up (if you haven’t had a top-up in the last two years).
Special One-Time Boost for Some Pensioners
You may also qualify for a one-off $4,000 Work Bonus boost if you meet all of these conditions:
✅ You were over the pension age and receiving a Work Bonus eligible payment before 1 December 2022
✅ You stopped receiving that payment before 1 December 2022
✅ You haven’t received a one-time $4,000 boost before
Final Thoughts: Making the Most of the Work Bonus
The Work Bonus Scheme is a powerful tool for Australian pensioners who want to continue working without drastically reducing their pension payments. By understanding how your balance works and keeping track of your income offsets, you can maximize your pension while still earning.
💡 Remember: If you’re unsure about your eligibility or balance, check your myGov account or contact Centrelink for assistance.
Leave a Reply