The Work Bonus allows pensioners who are working to keep more of their pension, on top of the normal income test free area. (Source: Services Australia\/AAP) <\/p>\n
Working beyond 67<\/a> might not sound like everyone\u2019s idea of Christmas cheer, but what if there was a way to earn some extra money without it affecting your Age Pension<\/a>?<\/p>\n Enter the Work Bonus<\/a> \u2014 a lesser-known scheme that could put more cash in your stocking just in time for the festive season.<\/p>\n There were approximately 2.7 million Australians on the Age Pension last financial year, but only a very small percentage took advantage of the Work Bonus.<\/p>\n RELATED<\/p>\n During this time frame, around 156,000 customers who were Age Pension age and receiving the Age Pension, Carer Payment or Disability Support Pension took advantage of the Work Bonus.<\/p>\n That\u2019s a lot of people potentially missing out on a benefit that can make a real difference, especially at this expensive time of year.<\/p>\n The Work Bonus could also be called the \u2018Santa Claus\u2019 because, for many older Australians on fixed incomes, it can feel like Christmas has come early with a little more jingle in their pocket.<\/p>\n The Work Bonus<\/a> allows pensioners who are working (for an employer or eligible self-employment) to keep more of their pension.<\/p>\n That\u2019s on top of the normal income test free area of $218 per fortnight for singles and $380 per fortnight combined for couples.<\/p>\n Each fortnight $300 is added to your Work Bonus Bank balance. If you earn more than $300 from work in a single fortnight, any extra income is offset against your Work Bonus Balance. Your pension payment doesn\u2019t change until your Work Bonus balance is reduced to $0.<\/p>\n If you don\u2019t earn enough to offset the full $300 Work Bonus, the unused amount rolls over, up to a maximum of $11,800.<\/p>\n The Work Bonus also supports pensioners who work in short, higher-income bursts during the year. So, you could work as a store Santa<\/a> or an exam marker for four to six weeks\u2019 work, and it may never affect your pension.<\/p>\n If you\u2019re over Age Pension age and claiming a pension for the first time, you\u2019ll start with a Work Bonus balance of $4,000.<\/p>\n Meaning you could start work straight away if you wanted and earn over $4,000 in your pocket before you see any change to your pension rate.<\/p>\n It doesn\u2019t matter if you\u2019ve made Santa\u2019s nice list, but to be eligible<\/a> for the Work Bonus, you must be of Age Pension age and on one of these payments:<\/p>\n Each payment has different rules. If you get Carer Payment or Disability Support Pension, you still need to meet the normal work rules for those payments.<\/p>\n If you\u2019re getting the transitional rate of pension, you\u2019re not eligible for the Work Bonus.<\/p>\n You can use your Centrelink online account through myGov to see your Work Bonus balance.<\/p>\n Besides the Work Bonus, there are plenty of other ways to keep your wallet merry and bright this Christmas.<\/p>\n Try a Secret Santa instead of buying everyone their own gift, host a potluck Christmas lunch where each guest brings a dish to share, or consider re-gifting.<\/p>\n But beware of the Christmas credit card hangover<\/a>. Credit cards and personal loans can be attached to high interest rates and fees, which can cause your debt to snowball faster than Frosty on a hill.<\/p>\n Need a little guidance before your budget flies off like Rudolph on Christmas Eve? Don\u2019t stress, you can talk to one of our Financial Information Service<\/a> Officers for free and impartial information.<\/p>\n While this service doesn\u2019t provide personal financial advice, it helps people to improve their financial capability and builds self-sufficiency by looking at financial options beyond the payments we offer.<\/p>\n We also have support to help you budget, deal with debt and manage your money on our website<\/a>.<\/p>\n Hank Jongen is Services Australia General Manager<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n