Will earning extra income affect my pension payment?


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Q: I am on the age pension but an opportunity for me to do some short-term work has come up. How will this income affect my pension payment?

This is a great question to consider, as many Australian pensioners think that they can't participate in the workforce once they have retired. The good news is that they can.

The work bonus is an incentive for pensioners so that taking up short-term or seasonal work will lessen the effect on your payment rate, if any. It allows the first $250 of your employment income to be disregarded by the income and assets test.


If, in any given fortnight, your income does not exceed $250, the difference will be added to your work bonus balance - up to the full $250 if you do not work at all - which can accrue up to a maximum $6500.

This means if you only work for a certain period of the year, perhaps marking exam papers, your pension payment rate will not be affected until you exhaust the work bonus balance you have accumulated.

To find out more information about the work bonus and how it will affect you and your pension, visit the DHS website here.

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