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Veterans' Entitlements Act 1986
Part IIIB, Division 1A Work Bonus
The Work Bonus replaces the former Pension Bonus Scheme, as a scheme to encourage and reward older Australians who remain in the paid workforce past their normal retirement age.
Under this income test concession, the first $250 of the person's fortnightly employment income is excluded from the income test. The income concession amount is not subject to indexation. Where the fortnightly employment income is less than $250 per fortnight, an eligible person will accrue the unused portion of the $250 per fortnight income concession to a work bonus bank to offset their employment income in the future.
A person who:
- is receiving service pension or income support supplement;
- has reached qualifying age; and
- receives employment income arising from remunerative work undertaken as an employee in an employer/employee relationship.
A person who is receiving service pension or income support supplement at the transitional rate is not eligible for the work bonus.
Date of Introduction
20 September 2009
Significant Changes in Criteria or Purpose Since Introduction
Work bonus discount applies to all of the first $250 of fortnightly employment income, instead of the original discount rate of 50% for the first $500. This applies from 28 June 2011.
Unused fortnightly work bonus can be accrued in a work bonus bank, to a maximum amount of $6,500. Accrued amount in the work bonus bank can be used to offset employment income that exceeds the $250 p/f discount.