Grossly inadequate work choice | Q&A

Q I am a part-pensioner affected by the assets means test, but I am very close to being assessed under the income test because of some part-time work I do. I can do extra hours each week and earn a little more. I am making full use of the work bonus and was interested in the extra $4000 that is to be credited to my work bonus “bank account”. How this will operate and, as I have already made full use of the scheme? Am I entitled to it?

A Legislation enacting the special $4000 credit was passed last week and is set to take effect on Thursday. The current work bonus scheme allows an age pensioner to earn up to $300 a fortnight from work before their pension is reduced under the income means test. It is not available to people on a disability support pension.

The income must be from employment either as an employee or as a self-employed person. This amount is added to the normal means test incomefree area of $190 a fortnight for a single person, so you could earn up to $490 a fortnight before losing any pension under the income test.

In reality, you will probably have financial assets which are assessed under the deeming system and contributing to your fortnightly total of Centrelink-assessable income.

In the case of couples, each could use the work bonus scheme, giving a combined total of $600 being added to the combined couple’s income-free area of $336 a fortnight — or a grand total of $936 a fortnight.

Where the work bonus is not used, it builds up fortnightly in a work bonus “account” to a maximum of $7800 a year. This is especially good for those who do seasonal work and might work for one or two months where they could earn up to $7800 and not lose any pension.

The special $4000 will be added to this account on December 1. Because it must be used by December 31, 2023, you effectively have 13 months to make use of the credit. You could elect to increase your hours so that you get paid the full amount over the next 28 fortnights. This would be an extra $142.85 a fortnight — or a grand total of $442.85 a fortnight until December 31. Or, you could do the extra hours over the next month or so and use up the extra credit sooner. Simply divide the $4000 by the number of pay-periods you plan to work, to see how many extra hours that might be.