Millions of Aussies are now able to work more without having their Centrelink payments reduced.
From today, Aussies over the Age Pension age can earn an extra $4,000 per year before their Centrelink payments are impacted.
The Government has increased the maximum Work Bonus income bank from $7,800 to $11,800 per year. This change will stay in place until December 31, 2023.
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“This provides an immediate benefit to any pensioner over Age Pension age who works, and will help address labour shortages,” Minister for Social Services Amanda Rishworth said.
The cash boost will automatically be credited to eligible Aussies’ Centrelink income banks. Aussies do not need to do anything to get the bonus.
Under the changes, pensioners also do not have to reapply for payments for up to two years if they exceed the income limit. Currently, their social security is cancelled after 12 weeks of exceeding the limit.
Pensioners can still access their Pensioner Concession Card and benefits - including cheaper health care and medicines - for those two years.
The Government said this would help ensure pensioners who were working weren’t unnecessarily kicked out of the social security system.
Who do the changes apply to?
The Work Bonus changes apply to people over the Age Pension age who receive one of the following payments:
Disability Support Pension
Veterans’ Affairs Service Pensioners and Income Support Supplement
It follows increases to the Age Pension, Carer Payment and Disability Support Pension. In September, the payments increased by $38.90 per fortnight for singles and $58.80 per fortnight for couples.
The Age Pension rate is now up to $1,026.50 per fortnight for singles and $1,547.60 per fortnight for couples, including the pension supplement and energy supplement.