In a move to address industry skill shortages and encourage workforce participation, the government has announced pivotal changes to support income recipients returning to work. The pensioner work bonus has been permanently augmented, and the employment income nil rate period has doubled. This facilitate easier entry into the workforce for those receiving income support. 

Pension Income Test

Under the Age Pension income tests, a single person can earn up to $204 per fortnight. While a couple can earn up to $360 before their pension begins to reduce at a rate of 50 cents for every dollar over these thresholds. The pensioner work bonus plays a crucial role by reducing the amount of assessable income. It allow recipients to earn more without affecting their pensions. It accrues at a rate of $300 per fortnight, up to the maximum limit. Read full updates on the government website here. 

Work Bonus 

Initially set at $7,800, the maximum work bonus balance limit was temporarily increased to $11,800 until December 31, 2023, with an additional one-off increase of $4,000. To continue this initiative, pending legislation passage, new pension entrants and eligible veterans will begin with a $4,000 work bonus balance. Moreover, all eligible recipients will retain the increased maximum work bonus limit of $11,800, effective from January 1, 2024. Check the details here. 

Complementing the work bonus, the government will extend the employment income nil rate period to 12 fortnights. In addition to broaden access for full-time employment entrants from July 1, 2024, subject to legislation. Presently, if income support recipients earn above a certain threshold, their support payment is reduced and may cease after six fortnights if their income remains high. 

Stay informed about these critical changes to pensioner and income support bonuses. Contact us for further details and guidance on how these adjustments may affect you.