Q&A: How to make use of the additional $4000 income work bonus December 31st, 2022
I am a part pensioner that is affected by the assets means test but am very close to being assessed under the income test because of some part-time work I do. I am fortunate in that if I wish to, I can do extra hours each week and earn a little more.
At this stage, I am making full use of the work bonus and was interested in the extra $4,000 that is to be credited to my work bonus “bank account”.
Can you tell me how this will operate and as I have already made full use of the scheme, am I entitled to it?
The legislation enacting the special $4,000 credit came into effect on December 1, 2022.
The current work bonus scheme allows an age pensioner to earn up to $300 per fortnight from work before their pension is reduced under the income means test. The scheme is not available to people on a disability support pension.
The income must be from employment either as an employee, or as a self-employed person. This amount is added to the normal means test income-free area of $190 per fortnight for a single person meaning you could earn up to $490 a fortnight before losing any pension under the income test.
In reality, you will probably have financial assets which are being assessed under the deeming system and contributing to your fortnightly total Centrelink assessable income. In the case of couples, each could utilise the work bonus scheme giving a combined total of $600 being added to the combined couple’s income free area of $336 a fortnight or a grand total of $936 a fortnight.
Where the work bonus is not used, it builds up fortnightly in a work bonus “account” to a maximum of $7,800 per annum. This arrangement is especially good for those who do seasonal work and might work for 1 or 2 months where they could earn up to $7,800 and not lose any pension.
It must be used by 31 December 2023.
You could elect to increase your hours so that you get paid the full amount over the next 15 fortnights. This would be an extra $266 a fortnight or a grand total of $566 a fortnight until June 30.
Alternatively, you could do the extra hours over the next month or so and use up the extra credit sooner. Simply divide the $4,000 by the number of pay-periods you plan to work, to calculate how many extra hours that might be.