
Find new rules for Age Pension Work Bonus in Australia 2026: eligibility, payments, step-by-step guide, income limits, and tips for pensioners.
Age Pension Work Bonus 2026: A Quick Guide for Australians
What Is the Age Pension Work Bonus?
The Work Bonus is designed to help older Australians supplement their income by working, without losing too much of their pension. The scheme allows pensioners to earn extra money before their employment income affects their pension payments. It’s part of the effort to support seniors who want to stay in the workforce but worry about financial penalties.
Who Is Eligible for the Work Bonus?
To access the Work Bonus in 2026, you must be:
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Of Age Pension age (currently 67 years).
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Receiving an Age Pension from the Australian government.
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Reporting your work income to Centrelink.
How Does the Work Bonus Work?
Employment income earned (wages, salary, self-employment with active participation like bookkeeping or lawn mowing) is the key to using the Work Bonus. Investment or rental property income does not count.
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You can earn up to $300 per fortnight from work, and this amount is not assessed under the pension income test.
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Any unused portion of the fortnightly $300 accumulates in an ‘income bank’ – up to a maximum of $11,800.
This means pensioners can regularly earn more money before their pension starts to reduce.
Why Is the Work Bonus Important for Seniors?
This initiative encourages Australians to stay active and engaged in the workforce by removing traditional financial penalties. You don’t need to apply — Centrelink automatically offsets $300 per fortnight from your employment income before calculating your entitlement.
Income Bank Feature Explained
If you don’t earn the full $300 in a fortnight, the unused portion rolls over to an ‘income bank.’ For example: If you earn $100 for the fortnight, the remaining $200 goes into your income bank. Over time, this builds up and can be used to offset future earnings, up to $11,800 maximum.
Scheme Comparison Table
Scheme | Key Feature/Data |
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Work Bonus 2026 | Earn $300/fortnight not counted for pension. Max income bank: $11,800. |
Age Pension | Must be 67+ years, meet asset/income test, receive payments via Centrelink. |
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Singles: Can earn up to $2,378.60/fortnight or $61,844/year for part Age Pension.
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Couples: Combined limit of $3,645.60/fortnight or $94,786/year.
And remember—with the Work Bonus, the first $300/fortnight earned from eligible work doesn’t affect these calculations.
Step-by-Step: Making the Most of the Work Bonus
Step 1: Understand Your Eligibility
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Check your age (must be 67+).
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Confirm you’re receiving the Age Pension.
Step 2: Reporting Income
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Report wages and eligible self-employed income to Centrelink every fortnight.
Step 3: Income Bank Management
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Track unused Work Bonus amounts to maximize your benefit over time, up to $11,800.
Step 4: Get Help
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Contact Centrelink or the Department of Social Services for assistance.
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Professional advice is available if you need help with reporting or eligibility.
FAQs
Q1: How much can I earn before my pension is reduced?
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You can earn $300/fortnight from work without it affecting your pension. If you earn less, the unused portion goes into your income bank.
Q2: Do I need to apply for the Work Bonus?
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No application needed; Centrelink will automatically apply the Work Bonus for eligible pensioners.
Q3: What types of work qualify?
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Wages, salary, self-employed work with active participation (like gardening, bookkeeping). Investment income and rental property management don’t qualify.
Stay informed and check updates regularly to get the latest on Age Pension Work Bonus rules before and during 2026. This helps you make smarter decisions and maximize your income without risking your pension.
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