Can I earn extra cash if I'm already receiving the age pension?
Q. I am considering setting up a tutoring business to earn some extra cash. I am currently receiving an age pension. Will my new work as a tutor count under the work bonus?
A. The work bonus allows the first $250 of your employment income to be disregarded from the income and assets test. It does not apply to business income earned from self-employment.
As a sole trader, you don't pay yourself a wage. Centrelink will assess your net business income without using the work bonus and will deduct allowable expenses.
If you are already running a business, you will need to provide your latest tax return to the staff at Centrelink and the net income from this will be used until your next tax return is submitted.
But if you are just starting up your business, you will need to provide an income estimate.
As soon as your standard pension rate becomes equal to or higher than the transitional rate, we'll always pay you the standard rate.
Before you commence your tutoring side business, I would recommend you set up an appointment with a Department of Human Services financial information service officer like me.
To learn more about the work bonus, visit the DHS website: humanservices.gov.au/workbonus.