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On 28 September 2022, the Government introduced legislation that proposes changes to assist Age Pensioners who work, to earn more and keep their Age Pension. These measures are subject to the passage of legislation and may be subject to change.

$4,000 work bonus increase

A one-off $4,000 income credit will be added to the Work Bonus income bank of those at least pension age and in receipt of an Age Pension, Disability Support Pension or Carer Payment. Under the Work Bonus, the first $300 of fortnightly income from work is not assessed under the pension income test. Any unused part of the $300 fortnightly Work Bonus accrues in the Work Bonus income bank and can be used to offset future income from work. 

Currently, the Work Bonus income bank is capped at $7,800. This will temporarily be increased to $11,800 until 30 June 2023. Effective 1 July 2023, any amount in the Work Bonus income bank that exceeds $7,800 will be removed and no longer available to offset future income from work. This measure will commence at the earliest on 1 December 2022. 

Suspension of benefits

Those who lose their Age Pension due to the income test (and partners in receipt of eligible social security entitlements) will not have to reapply for the Age Pension for up to two years. At the time Age Pension ceases to be payable, the person’s ordinary income must include income for remunerative work the person themselves has undertaken.  This work must have been performed in Australia as an employee. 

To be eligible, they must also continue to qualify for the income support payment had they not failed the income test. Currently, the Age Pension cancels after 12 weeks of exceeding the income limit. This measure will commence at the earliest on 1 January 2023.

Pension concession card extension

Age Pensioners, Disability Support Pensioners, and their partners (who also hold a pensioner concession card) will be able to retain their Pensioner Concession Card and its associated benefits for two years following the cessation of their income support payment due to the income test. 

At the time Age Pension ceases to be payable, the person’s ordinary income must include income for remunerative work the person themselves has undertaken.  This work must have been performed in Australia as an employee. To be eligible they must also continue to qualify for the income support payment had they not failed the income test. Currently, Age Pensioners and Disability Support Pensioners lose eligibility for the pension concession card after 12 weeks and 52 weeks respectively. 

If temporarily absent from Australia, the maximum qualification period of up to six weeks still applies. The proposed measures are designed to encourage older Australians to return or increase their participation in the workforce. This measure will commence at the earliest on 1 January 2023.