Pensioners’ work bonus limit to get $4,000 boost
Pensioners also in a form of employment will be able to earn up to $4,000 more without their pension being affected.
Seniors will soon be able to earn more money without their fortnightly age pension being affected.
New laws being introduced to federal parliament on Wednesday will give a $4,000 boost to those on the pension who are also in a form of employment.
Under the proposal, the maximum work bonus balance limit will be increased from $7,800 to $11,800 from the start of next year.
Social Services Minister Amanda Rishworth said the new laws would remove obstacles to those on the pension looking to return to work in some capacity.
“Many older Australians are choosing to supplement their age pension with paid work, and good on them,” she said.
“We need to make sure that the system is incentivising older Australians to work if they want to.”
The legislation changes were one of the recommendations put forward in the government’s employment white paper, released in September.
It’s estimated 195,000 people go on to the age pension each year.
The changes are expected to cost $42.4 million over the next four years.
“No one should be financially disadvantaged by staying in the workforce longer, or returning to the workforce after some time away,” Rishworth said.
The new legislation will also introduce amendments to double the time limit for those on payments such as JobSeeker and youth allowance to retain benefits such as concession cards when they start work.
The time limit, also known as the employment income nil rate period will be increased from 12 weeks to 24 weeks from July 1, should the laws pass parliament.
Rishworth said the changes were to make sure those on the payments weren’t discouraged taking up short-term or casual work.
“Losing access to concession cards and certain supplements within a couple of months of getting a job can be concern for income support recipients considering opportunities for work,” she said.
“The doubling of the employment income nil rate period is about addressing this concern, smoothing the transition from income support to work.”
It was expected 138,000 welfare recipients would benefit from the changes, which would cost $42.8 million.
This article was first published by AAP.
