Changes to the Work Bonus effective from 1 December 2022

Proposed increases to the Work Bonus, contained in the Social Services and Other Legislation Amendment (Workforce Incentive) Bill 2022, have now officially passed both houses of Parliament and received Royal Assent on 23rd November, with an effective start date of 1 December 2022.

What does this mean?

The changes have increased the Work Bonus Income Bank by an additional $4,000 (increasing from $7,800 to $11,800) from 1 December 2022 to 31 December 2023. This increase will allow certain Centrelink payment recipients to take on additional paid employment without impacting their entitlements.

Why was this proposed?

With ongoing labour shortages in multiple industries across the country over recent times, and many older Australian’s happy to return to the workforce or increase their hours (but unable to do so without impacting their Centrelink payments), this change would allow those eligible to earn an additional $4,000 per annum in employment income without impacting on their Centrelink entitlements.

Who will be impacted?

The changes will affect people over age pension age receiving the following payments:

  • Age Pension.
  • Disability Support Pension.
  • Carer Payment.
  • Veterans Entitlement Act Pension and Income Support Supplement.

What do you need to do?

Nothing – anyone eligible will have a one-off credit of $4,000 added to their Work Bonus Income Bank from 1 December 2022.

Not sure how increasing or returning to work will impact your entitlements? Reach out for a discussion with one of our Financial Advisers.

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