How to enter an initial Work Bonus balance

The Work Bonus increases the amount an eligible pensioner can earn from work before it affects their pension income test.

The work bonus limit was initially set to revert back to $7,800 following a temporary increase to $11,800 in late 2022. However, from 1 January 2024, the increase was made permanent. As well, under the new law, new age pensioners start with a work bonus balance of $4,000.

Pathfinder implementation of the work bonus:

• $7,800 is accrued every year that the individual is eligible for the age pension

  • $300 is accrued per fortnight eligible for pension

• Unused amounts are carried forward indefinitely, up to the limit of $11,800

• In an individual’s first year of pension eligibility, their work bonus balance begins at $4,000, and accrues a fraction of $7,800 (depending on fraction of year eligible). 

How to enter an initial Work Bonus balance

For Individuals already receiving the age pension before the start of analysis, you can enter their carried-forward work bonus balance in the ‘Work bonus balance at start of analysis’ field (at the Current situation > Personal details step, under the ‘Work bonus balance information’ section). Meanwhile, Individuals that become eligible for the age pension during the analysis period will automatically begin with a $4,000 work bonus balance.

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