From 1 July 2023, the pension income free area is $204 a fortnight for single pensioners, and for couples combined, it is $360 a fortnight. This means a single pensioner over Age Pension age with no other private income could earn up to $504 a fortnight from work and still receive the maximum rate of pension.
From 20 March 2023 the maximum full Age Pension increases $37.50 per fortnight for a single person, and $28.20 per person per fortnight for a couple.
A single pensioner can earn $204 per fortnight before it affects the pension and a pensioner couple can earn up to $360 per fortnight, combined, before it affects the pension.
Increase to working limits for pensioners
The temporary income bank top up will increase the amount pensioners can earn from $7,800 to $11,800 between 1 December 2022 and 31 December 2023.
Eligible pensioners do not need to do anything, the $4,000 boost will be automatically credited to their Centrelink income bank from December 1, 2022 until December 31, 2023. It follows recent increases to the Age Pension, Carer Payment and Disability Support Pension.
Eligible pensioners have had $4,000 credited to their Work Bonus balance since 1 December 2022, increasing the maximum Work Bonus balance from $7,800 to $11,800. This measure extends the increase to 31 December 2023.
The rules for working after retirement are that you need to ensure you are not in breach of superannuation rules if you plan on accessing your super. Apart from that, there is no restriction on you working after retirement.
Incentives to work. The government will provide $3.7 million in 2023–24 to extend the measure to provide age and veteran pensioners a once-off credit of $4,000 to their Work Bonus income bank and temporarily increase the maximum income bank until 31 December 2023.
Tax Returns for Aged Pensioners
If your only source of income is the aged pension, it is compulsory for you to lodge a tax return each year. This applies is Centrelink is withholding tax from the aged pension. This information will be included in your PAYG summary, indicating the amount of tax withheld.
Full Age Pension income threshold increases by: Singles threshold $204 per fortnight, increase is $14 per fortnight, $364 per annum. Couples threshold $360 per fortnight, increase is $24 per fortnight, $624 per annum.
The Cost of Living Payment is a one-off payment of $250. You'll only get one Cost of Living Payment, even if you were getting more than one eligible payment or concession card. It's not taxable. You don't need to report it as income.
Can I Get the Pension if I Have Super? Having superannuation savings does not deny you from receiving Age Pension payments. Eligibility for the Age Pension is based on an Assets Test and an Income Test.
A pensioner can receive an amount of private income before their pension rate starts to reduce. This is the income free area which, from 1 July 2023, is $204 for single-rate pensioners and $360 for couples (combined). For each dollar of income above the income free area, the single pension is reduced by 50 cents.
When you reach Age Pension age. We count your superannuation both: in the assets test - the value is the balance on your latest statement. in the income test under the deeming rules.
Around 1.1 million Aussies on JobSeeker who are looking for work are set to benefit from the $40-per-fortnight cash boost. However, those aged over 55 on the JobSeeker payment will see a bigger $92.10-per-fortnight increase. Treasurer Jim Chalmers said this budget would focus on helping those “most vulnerable”.
The relief will be given to Aussies receiving income support, such as those on JobSeeker, pensioners and Commonwealth Seniors Health Card holders, Family Tax Benefit A and B recipients and eligible small business owners.
What do we mean by the 4% rule? The 4% rule states that you can comfortably withdraw 4% of your total investments in your first year of retirement and adjust that amount for inflation for every subsequent year without risking running out of money for at least 30 years.
Can I access super at 65 and keep working? Yes. You can access your super when you turn 65 regardless of whether you're still working. You can also make certain types of super contributions up until you turn 75, even if you're retired and drawing a super pension.
If you are aged 60 years old and not yet ready to retire, you could access some of your super while you're still working by opening a Transition to Retirement (TTR) Income account.
The Cost of Living Payment is a $250 one-off payment to help with the cost of living. The Cost of Living Payment is not taxable, and you don't need to report it as income. You'll get it if you were residing in Australia on 29 March 2022, and: you were able to claim, or were getting an eligible payment.
You have $300 of Work Bonus available each fortnight, which can accrue up to the maximum amount. When your Work Bonus eligible income is less than $300 a fortnight, we'll reduce your income to zero.
All pensioners over Age Pension age are eligible for the Work Bonus. This includes: Age Pension, Carer Payment and Disability Support Pension recipients. Department of Veterans' Affairs Service Pensioners and Income Support Supplement recipients over qualifying age are also eligible.