Centrelink Work Bonus 2025
Understanding the Work Bonus for Age Pension recipients. Learn how to earn up to $300 per fortnight from work without affecting your pension payment.
The Work Bonus allows Age Pension recipients to earn income from work without it reducing their pension. It's a powerful incentive that lets you keep working part-time while maintaining your benefits.
What is the Work Bonus?
The Work Bonus is an additional income concession that reduces the amount of employment income counted under the income test. It applies to Age Pension recipients and some other payment types.
Work Bonus 2024-25
- Fortnightly concession: $300
- Work Bonus balance (bank): Up to $11,800
- Initial balance: $4,000 (from 1 January 2024)
- Applies to: Employment income, self-employment income from gainful work
How the Work Bonus Works
The $300 Fortnightly Concession
Each fortnight, the first $300 of your employment income is not counted under the income test. This is automatic - you don't need to apply.
The Work Bonus Balance
If you don't use all of your $300 concession in a fortnight, the unused amount goes into your Work Bonus balance (or "bank"). You can accumulate up to $11,800.
Example: Building Your Balance
Mary earns $0 from work for 20 fortnights:
Starting balance: $4,000
Accumulates: 20 × $300 = $6,000
New balance: $10,000
Then Mary gets a casual job paying $500/fortnight:
$300 concession + $200 from balance = $500 not counted
Her pension is not affected until balance is used.
What Income Counts?
Work Bonus Applies
- • Wages and salary
- • Self-employment income
- • Director's fees (for active work)
- • Commission
- • Leave payments
Work Bonus Does NOT Apply
- • Superannuation income streams
- • Investment income (dividends, interest, rent)
- • Annuities
- • Foreign pensions
- • Passive income from trusts/companies
Combined with Income Test Free Areas
The Work Bonus is applied BEFORE the normal income test free areas, giving you significant earning capacity:
| Status | Work Bonus | Income Free Area | Total Free |
|---|---|---|---|
| Single | $300 | $204 | $504/fortnight |
| Couple (combined) | $600 (each $300) | $360 | $960/fortnight |
Annual Earning Potential
Single pensioner: $504 × 26 = $13,104/year tax-free pension impact
Couple: $960 × 26 = $24,960/year combined without pension reduction
Plus your accumulated Work Bonus balance can offset higher earning periods.
Who is Eligible?
The Work Bonus automatically applies if you receive:
- Age Pension
- Carer Payment (if over Age Pension age)
- Disability Support Pension (if over Age Pension age)
Note: You must be of Age Pension age (currently 67) to access the Work Bonus.
Practical Tips
- Check your balance: View via myGov/Centrelink app
- Time big jobs: Use accumulated balance for one-off higher paying work
- Couples strategy: Both partners get $300 each
- Report income correctly: Ensure it's classified as employment income
- Self-employed: Must be "gainful work" not passive investment
Example Scenarios
Part-Time Retail Work
John works 10 hours/week at $25/hour = $250/fortnight.
Work Bonus: $250 (all covered)
Pension impact: $0
Casual Consulting
Sarah does occasional consulting, earning $800 one fortnight:
Work Bonus $300 + Balance used $500 = $800 covered
Pension impact: $0 (if sufficient balance)
Key Takeaways
- $300/fortnight of work income doesn't affect your pension
- Unused amounts accumulate up to $11,800 in your Work Bonus balance
- Combined with income free areas, singles can earn $504/fortnight pension-free
- Only applies to employment/self-employment income, not investments
- Both members of a couple get their own $300 Work Bonus