New rules for pension and work

National Seniors has scored a major lobbying win in early 2011 with changes to the Work Bonus scheme.

Seniors who worked in seasonal jobs like exam supervisors at school testing times, accountants at tax time and Santas at Christmas were being docked of their pension because of the federal government’s limit on income in a tax year.

New rules from 1 July 2011 means income will be annualised, encouraging older Australians to continue contributing their skills and knowledge by remaining in the workforce.

Under the new rules age pensioners will be able to earn up to $250 a fortnight without it being assessed as income under the income test.

Pensioners will also be able to build up any unused amount of their $250 fortnightly bonus in an ‘income bank’ to a total of $6,500.

National Seniors addressed the issue in our 2011/12 Federal Budget submission as well as in a number of other submissions to government.

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