Working after pension age
The Australian Government is supporting senior Australians to work, if they are able to, and wish to do so, by allowing them to keep more of their pension when they have income from work.
Seniors may have substantial income from work 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 reward and incentivise work.
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 accumulates in the Work Bonus income bank up to a maximum amount of $11,800, and new pensioners over Age Pension age commence with a $4,000 Work Bonus income bank starting balance.
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.
For more information go to the Work Bonus factsheet.
Pension Income Test
The pension income test is designed to encourage pensioners to supplement their pension with additional private income. 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.
For further information about the income free area and the amount of private income a pensioner may receive before their pension rate reduces to zero, please refer to Services Australia.
More information for seniors in the workforce
- Australian Taxation Office – information for seniors and retirees on tax concessions.
- Australian Human Rights Commission – information about age discrimination.