Can I earn extra income without losing pension benefits?
Yes, the Government is enabling people on the Age Pension to earn extra income without losing their pension benefits.
To receive the full Age Pension as a single pensioner, you can earn up to $204 per fortnight. A couple can earn up to $360 per fortnight, combined, before it affects pension payments. This is known as the ‘income free amount’.
To receive the part Age Pension as a single pensioner, you can earn up to $2,436.60 (up to $3,725.60 for couples) per fortnight.
The Work Bonus
On top of your income, the Work Bonus allows you to earn an additional income per fortnight from employment or self-employment before your pension payments are affected.
This means the first $300 of income you earn from paid work each fortnight is ignored when determining your Age Pension under the income test. This is on top of the income free amount.
Any portion of the $300 that is not used, accumulates into a Work Bonus Income Bank which you can use in the future.
However, since 1 January 2024, people who start to receive the Age Pension for the first time are eligible for an upfront deposit into their Work Bonus income bank of $4,000, in addition to the fortnightly $300 Work Bonus amount. A similar credit for existing Age Pensioners applied between 1 December 2022 and 31 December 2023.
The combination of the additional $4,000 credit as well as any fortnightly unused portion of the $300 Work Bonus allows a maximum of $11,800 to be accumulated in your Work Bonus Income Bank. Once you exceed this, you won’t be able to receive anymore. Your Work Bonus balance begins accumulating from the day you become eligible for Age Pension payments, even if you’re not working.