Age Pension Work Bonus Boost in 2025—How Much More Can You Earn? Full Breakdown Inside

Age Pension Work Bonus Boost: The Age Pension Work Bonus in 2025 offers older Australians a valuable opportunity to earn more without immediately reducing their pension payments. As more seniors seek ways to stay active in the workforce and supplement their income, the Australian Government’s Work Bonus policy provides a helpful financial cushion.

We explain what the Work Bonus is, how much you can now earn under the updated 2025 rules, and how to make the most of it if you’re on the Age Pension.

Age Pension Work Bonus Boost

The Age Pension Work Bonus in 2025 is a powerful tool for older Australians looking to stay active in the workforce while boosting their income. With exemptions of up to $300 per fortnight, a generous income bank, and a $4,000 starting credit for new pensioners, it’s easier than ever to supplement your pension without financial penalties.

By reporting income properly and understanding how the bonus works, Age Pensioners can maintain their benefits and earn extra without worry. For anyone looking to stretch their finances in retirement, this is a smart and flexible solution.

What Is the Age Pension Work Bonus?

The Work Bonus is a government initiative that lets Australian Age Pension recipients earn additional income from work without reducing their pension payments right away. It’s part of the pension income test exemptions and is especially helpful for older Australians who want to remain in part-time or casual work.

This bonus was created to support active ageing, improve financial security, and allow seniors to ease into retirement without losing income benefits abruptly.

How Does the Work Bonus Work in 2025?

The Work Bonus is applied automatically and affects how your employment income is assessed for your pension.

Key Features of the Work Bonus:

1. Fortnightly Exemption of $300

Each fortnight, the first $300 of income from employment or self-employment is excluded from the pension income test. That means you can earn this much without affecting your pension amount at all.

2. Work Bonus Income Bank

If you don’t use up the full $300 allowance in a fortnight, the remaining amount goes into a Work Bonus income bank. Over time, this income bank can grow up to $11,800. You can draw from this balance to offset future earnings that exceed the $300 fortnightly exemption.

3. $4,000 Starting Credit for New Pensioners

From 1 January 2024, anyone who starts receiving the Age Pension gets an automatic $4,000 credit in their Work Bonus income bank. This gives new recipients an immediate buffer, helping them earn more in the initial months without impacting their pension.

Age Pension Work Bonus Boost: How Much More Can You Earn in 2025?

Here’s a breakdown of how much Age Pensioners can earn before their payments are affected:

For Single Pensioners

• Standard income-free threshold: $212/fortnight
• Add Work Bonus: $300/fortnight
• Total exempt income: $512 per fortnight

For Couples (Combined)

• Standard income-free threshold: $372/fortnight
• Each partner gets a $300 Work Bonus
• Total exempt income: $972 per fortnight

Tip: If you have unused amounts in your Work Bonus income bank, you can even exceed these amounts temporarily without losing pension.

Eligibility Requirements

Who Can Use the Work Bonus?

You are automatically eligible for the Work Bonus if:

• You receive the Age Pension
• You are above Age Pension age
• You earn income from employment or self-employment

You don’t need to apply. Centrelink will apply the Work Bonus to your income test when you report your earnings.

Eligible Income Sources

• Wages or salary
• Self-employment income (even gig work or freelancing)
• Paid leave
• Bonuses or commissions

Note: Passive income like rent, superannuation withdrawals, or investments do not qualify.

Age Pension Work Bonus Boost: How to Report and Track Work Bonus?

You must report your gross employment income every fortnight to Centrelink. This ensures your Work Bonus is properly applied.

Ways to Report:

• Online through myGov
• Centrelink Express Plus App
• By phone or in person at a Services Australia office

To track your Work Bonus balance, log into your myGov account and view your pension details.

Example Scenario: How the Work Bonus Works

Let’s say Anna, a single pensioner, earns $400 in a fortnight from part-time work.

• First $300: Automatically exempt under the Work Bonus
• Remaining $100: Compared against the income-free threshold of $212
  • Since $100 < $212, Anna’s Age Pension is not affected

Now suppose Anna earns $700 in another fortnight:

• First $300 = Exempt (Work Bonus)
• Next $212 = Exempt (income-free area)
• Remaining $188 = Counted as assessable income
• But Anna has $11,800 in her Work Bonus income bank
  • She can use $188 from this bank to completely offset the excess income
  • Result: Her pension still remains unchanged

Important Notes & Cautions

1. Income Bank Cap

• The Work Bonus income bank caps at $11,800.
• Once you hit this cap, unused bonus amounts will no longer accumulate until you reduce the balance by earning more.

2. Pension Suspension Risks

• If your income exceeds the cut-off limit for more than 12 consecutive fortnights, your pension may be suspended.
• You can resume the pension within 2 years without reapplying—provided your income drops back below the cut-off.

FAQs on Age Pension Work Bonus Boost

Q1: Can I get the Work Bonus if I’m on the Disability Support Pension?

No. The Work Bonus is only available to Age Pension recipients.

Q2: Do I need to apply for the Work Bonus separately?

No. Centrelink applies it automatically when you report your employment income.

Q3: Does the Work Bonus apply to super withdrawals or rental income?

No. Only income from work (wages, salary, business income) is eligible.

Q4: Can I still earn more than $300/fortnight if I have income in my Work Bonus bank?

Yes. You can earn more, and use the bank balance to offset the extra income—keeping your pension safe.

Q5: How do I check my Work Bonus bank balance?

You can log into your myGov account linked to Centrelink and view your Work Bonus details.