The Work Bonus reduces the amount of employment income or eligible self-employment income that we applied to your rate of pension entitlement under the income test. The Work Bonus doesn’t apply to income from your investments. If you work, we’ll apply your Work Bonus balance to offset your Work Bonus eligible income.
How much is the Centrelink Work Bonus?
The Work Bonus operates in addition to the pension income test free area. From 1 July 2020, for single pensioners, the pension income test free area is $178 a fortnight and for couples combined, it is $316 a fortnight.
Is the Work Bonus taxable?
When you pay your employee a bonus, this is treated by the ATO as paying wages. Because of this, bonus payments are liable for payroll tax. For example, in NSW the payroll tax rate is 5.45% for businesses exceeding the payroll tax threshold of $1,000,000 annually.
Who is eligible for Centrelink bonus?
When you claim a Pension Bonus, generally you must be an Australian resident and in Australia. You must work at least 960 hours during each 12 month period to pass the work test. We call this a bonus period. Only accruing membership can count toward your Pension Bonus.
How is work bonus calculated?
The first $300 per fortnight of eligible income is disregarded and any unused amount (between zero and $300) is added to your Work Bonus balance, to a maximum of $7,800. The Work Bonus balance is used to offset any future eligible income you earn that exceeds $300 in a fortnight.
How much can you earn before Centrelink cuts your pay?
We’ll start to reduce your payment if your income is over $437 a fortnight. The Income Bank can help you keep more of your payment. You can get credits if your income is less than $437 a fortnight. Then you can use the credits when you earn more than $437 in a different fortnight.
What’s the maximum amount of work bonus you can accumulate?
The maximum Work Bonus balance that you can accumulate is $7,800. The balance is never reset so once you reach the maximum it will remain at this level until you start to earn income. If you start work, Centrelink will use your Work Bonus eligible income to reduce your Work Bonus balance before reducing your pension.
When does the work bonus start in Australia?
The Work Bonus increases the amount an eligible pensioner can earn from work before it affects their pension rate. From 1 July 2019, the first $300 of fortnightly income from work is not assessed and is not counted under the pension income test.
Where do I find out what my work bonus is?
Contact Centrelink or visit your local office and get them to check the business details screen. Contained within this screen is a section stating ‘% of income for Work Bonus’. If you are single this should be filled with 100% and, if you are a couple, 50/50.
How does the work bonus work for pensioners?
The income bank amount offsets future income from work that would otherwise be assessable under the pension income test. The income bank amount is not time limited; if unused, it carries forward, even across years. The Work Bonus income bank is useful for pensioners who wish to work, particularly those who undertake intermittent or occasional work.
