Centrelink reduces payments based on your gross fortnightly income, with different thresholds for each payment (like JobSeeker, Youth Allowance, Austudy), but generally, payments start reducing after $150-$500+ fortnightly, with gradual decreases (50c-$1) and then faster cuts (60c-$1+) as income rises, until payments stop at a "cut-out" point, varying significantly by your personal situation (single, couple, kids, living situation). Key factors are your payment type, total income (not partner's), and if you're building an "Income Bank" for high-income periods.
Personal Income Test
Your payment is reduced by 50 cents for each dollar your gross income is over $528 up to $633 per fortnight. Once your gross income exceeds $528 per fortnight, your payment reduces at a rate of 60 cents for every dollar over $633.
You can generally work up to 29 hours a week on some Centrelink payments like Disability Support Pension (DSP) without losing it, but exceeding 30 hours often affects eligibility, though it depends heavily on your specific payment (JobSeeker, DSP, etc.), your assessed work capacity (partial capacity), and your income level, with higher hours or income potentially reducing or pausing payments. For JobSeeker/Youth Allowance, exceeding around 30-35 hours (or full-time) can trigger a nil rate period. Always report any work to Services Australia within 14 days.
If you do paid work but you're still on your Centrelink payment, you may continue in employment services. This means you'll still need to: meet any mutual obligation requirements. report your income to Centrelink every fortnight.
Income Test
From 20 September 2025, a single pensioner can earn $218 a fortnight and still be eligible for the full single pension of $1178.70 a fortnight, including all supplements.
The short answer is yes, you are able to take your pension and still continue to work. These days, in the UK at least, there is not necessarily a retirement age for anyone. You can continue working for as long as you like and, from the age of 55 (57 from April 2028), access most private pensions in various ways.
State pension and tax
Anyone solely receiving the new flat-rate state pension - for those who reached state pension age after April 2016 - will get up to £12,547.60 next year. That is just below the income tax threshold of £12,570.
Income Support or Jobseeker's Allowance
If you are working less than 16 hours per week, and your partner is working less than 24 hours per week, then you may be eligible to claim these benefits but the amount you are entitled to could be affected by any earnings you have.
You and your partner can have a combined income of up to $380 per fortnight before your pensions are affected. For every dollar earned over $380, each member's pension is reduced by $0.25.
Effect on payments
If you're single and don't have children, you can earn up to $160 a week before tax, before it affects your benefit. Once you earn over $160 a week before tax, your benefit reduces by 70 cents for every extra $1 of income you earn.
You have to report any employment income you or your partner have been paid, even if it's zero, and any other changes to your circumstances every fortnight before we can pay you. You can find your reporting dates in your Centrelink online account.
Permanently Retired 60-64: If you are accessing your super because you are retired with no intention of ever returning to part-time or full-time work ever again, then you cannot work 10 hours or more in any given week.
The first $150 a fortnight you earn at your job will not affect your Centrelink payment. The next $100 that fortnight will decrease your Centrelink payment by 50¢ for each dollar earned. After $250 that fortnight, your Centrelink payment will be decreased by 60¢ for each dollar earned.
You can generally work up to 29 hours a week on some Centrelink payments like Disability Support Pension (DSP) without losing it, but exceeding 30 hours often affects eligibility, though it depends heavily on your specific payment (JobSeeker, DSP, etc.), your assessed work capacity (partial capacity), and your income level, with higher hours or income potentially reducing or pausing payments. For JobSeeker/Youth Allowance, exceeding around 30-35 hours (or full-time) can trigger a nil rate period. Always report any work to Services Australia within 14 days.
Many job seekers unknowingly sabotage their chances by repeating avoidable mistakes, from submitting generic resumes to going silent after interviews. These missteps can be the difference between landing a great opportunity and getting passed over without explanation.
The $1,000 a month rule for retirement is a simple guideline: save $240,000 for every $1,000 you want in monthly income, based on a 5% annual withdrawal rate ($240,000 x 0.05 = $1,000/month). It's a popular tool for estimating total savings needed, but it doesn't fully account for inflation, healthcare, or taxes, so it serves as a starting point rather than a definitive final number for a personalized plan.
Employment and the Age Pension - The Work Bonus
Under the Work Bonus, you can earn up to $300 of employment income a fortnight – or $7,800 a year – without it affecting your Age Pension. This is regardless of whether it's regular, casual or short-term work.
The top ten financial mistakes most people make after retirement are:
If you earn less than $18,200 from all sources, you won't pay tax. You will normally pay tax on the excess over $18,200. The $18,200 tax-free threshold equates to: $350 a week.
Earnings affect the amount of Universal Credit you receive. If you are paid through Pay As You Earn (PAYE), Universal Credit is automatically updated on the amount of earnings you have received. Earning more money won't mean any of the Universal Credit elements you are entitled to stop being paid.
A single homeowner with more than $321,500 in assets will start to see a decrease in their Age Pension payments. If their assets reach $714,500, their Age Pension payments will be reduced to $0. For a non-homeowner couple, the maximum assets cut-off is $1,332,000.
You don't need to lodge a tax return if:
Centrelink is not withholding tax from your pension payment and you have no other income. If your aged pension payment is your only source of income, then you do not need to lodge a tax return.
There's no limit to how much you can earn in retirement as you'll continue to pay taxes. If you wanted to, you could work full-time whilst claiming your pension.
One benchmark is the “6% Rule”: if your annual pension payout equals 6% or more of the lump sum value, the annuity may be more competitive. If the rate is lower, investing the lump sum could offer greater potential.