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Working after pension age

Working after pension age

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Seniors may have substantial work income from and still receive a pension (Age Pension, Disability Support Pension, or Carer Payment). For those over Age Pension age, the application of the pension income test and the Work Bonus provide an incentive to work.

A pensioner can receive an amount of private income before their pension rate starts to reduce. This is the income free area which, from 1 July 2023, is $204 for single-rate pensioners and $360 for couples (combined). For each dollar of income above the income free area, the single pension is reduced by 50 cents.

What the standard rules are

These are the income rules for most pensioners. Read about the Work Bonus below, and how it can help you earn more income from working without reducing your pension.

Single person

Income per fortnight

Amount your pension will reduce by

Up to $204

$0

Over $204

50 cents for each dollar over $204

Couple living together or apart due to ill health

Combined income per fortnight

Amount your combined pension will reduce by

Up to $360

$0

Over $360

50 cents for each dollar over $360

Work Bonus

Under the Work Bonus, the first $300 of fortnightly income from work is not assessed as income under the pension income test. Any unused amount of the fortnightly $300 Work Bonus will accumulate in a Work Bonus income bank, up to a maximum amount.

The amount accumulated in the income bank can be used to offset 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.

Note: from 1 December 2022 to 31 December 2023, a one-off, temporary credit of $4,000 applies to Work Bonus income bank balances. The maximum income bank balance also increases to $11,800 over this period. Subject to the passage of legislation, from 1 January 2024 this temporary measure will be made permanent, resulting in all new pensioners over Age Pension age receiving a one-off $4,000 credit to their Work Bonus income bank. The maximum income bank balance will also be permanently increased to $11,800.

 

 

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Doug Tarrant

Doug Tarrant

Principal B Com (NSW) CA CFP SSA AEPS

About Doug

As founder of the firm Doug has over 30 years of experience advising families, businesses and professionals with commercially driven business, taxation and financial advice.

Doug’s advice covers a wide variety of areas including wealth creation, business growth strategies, taxation, superannuation, property investment and estate planning as well as asset protection.

Doug’s clients span a whole range of industries including Investors; Property and Construction; Medical; Retail and Hospitality; IT and Tourism; Engineering and Contracting.

Doug’s qualifications include:

  • Bachelor of Commerce (Accounting) UNSW
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  • Certified Financial Planner
  • Self Managed Superannuation Fund Specialist Adviser (SPAA)
  • Self Managed Superannuation Fund Auditor
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Christine Lapkiw

Christine Lapkiw

Senior Associate B Com (Accounting) M Com (Finance) CA

About Christine

Christine has over 25 years of extensive experience advising clients principally on taxation and superannuation related matters and was a founder of the firm when it began in 2004.

Christine’s breadth and depth of knowledge and experience provides clients with the comfort that their affairs are in good hands.

Christine currently heads up the firm’s SMSF division and oversees a team that provide tailored solutions for clients and trustees on all aspect of superannuation including:

  • Establishment of SMSFs
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  • Property acquisitions
  • Pension structuring
  • SMSF ATO administration and dispute services

Christine’s qualifications include:

  • Bachelor of Commerce (Accounting)
  • Member of the Institute of Chartered Accountants
  • Master of Commerce (Finance)
Michelle Jolliffe

Michelle Jolliffe

Associate - Business Services B Com (Accounting) CA

About Michelle

Michelle has been with the firm in excess of 13 years and is an Associate in our Business Services Division.

Michelle and her team provide taxation and business advice to a wide variety of clients. Technically strong Michelle can assist with all matters in relation to taxation covering Income and Capital Gains Tax; Land Tax; GST; Payroll Tax and FBT.

Michelle is an innovative thinker and problem solver and always brings an in-depth and informed view to the discussion when advising clients.

Michelle has considerable experience with business acquisitions and sales as well as business restructuring.

Michelle’s qualifications include:

  • Bachelor of Commerce (Accounting)
  • Member of the Institute of Chartered Accountants
Joanne Douglas

Joanne Douglas

Certified Financial Planner and Representative CFP SSA Dip FP

About Joanne

Joanne commenced with Level One in 2004 and has developed into one of our Senior Financial Advisers.

With over 20 years of experience, Joanne and her team provide advice across a wide variety of areas including: Superannuation; Retirement Planning; Centrelink; Aged Care; Portfolio Management and Estate Planning.

A real people person Joanne builds strong long term relationships with her clients by gaining an in-depth knowledge of their personal goals and aspirations while providing tailored financial solutions to meet those needs.

Joanne’s qualifications include:

  • Certified Financial Planner (CFP)
  • Self Managed Superannuation Firm Specialist Adviser
  • Diploma of Financial Planning

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