How It Works
| Feature | Detail |
|---|---|
| Fortnightly Work Bonus | $300 per fortnight |
| Income bank maximum | $7,800 |
| This is ON TOP of | The standard income-free area (~$204/fn single) |
| Applies to | Employment income only (wages, salary) |
| Does NOT apply to | Investment income, super pensions, rental income |
The Income Bank
If you don't use your $300 Work Bonus in a fortnight, the unused amount accumulates in your income bank — up to a maximum of $7,800. When you do earn employment income, the bank is used first before any reduction to your pension.
Example
You're on the full Age Pension and haven't worked for 6 months. Your income bank has accumulated $3,900 (13 fortnights × $300). You then take a casual job earning $500/fortnight. The first $300 is covered by the fortnightly Work Bonus. The remaining $200 draws from your income bank. Your pension isn't affected until the bank is depleted.
Who Gets It
Age Pension, Disability Support Pension, Carer Payment, and some other pension-type payments. It does NOT apply to JobSeeker, Youth Allowance, or Parenting Payment.
Frequently Asked Questions
How much can a pensioner earn?
With the Work Bonus ($300/fn) plus the income-free area (~$204/fn), a single pensioner can effectively earn about $504 per fortnight from employment before any pension reduction. The income bank can push this even higher in the short term.
Does investment income count?
No. The Work Bonus only applies to employment income (wages, salary). Investment income, super pension income, and rental income are assessed under the normal income test.