Latest news with #WorkBonus
The Advertiser
27-05-2025
- Business
- The Advertiser
Pensioners left hanging as government signals deeming freeze to end
Asset tests affecting age pensioners look set to change in weeks with a freeze on deeming rates to end, despite advocacy groups calling for an extension as Australians struggle with the cost-of-living. Deeming rules assume financial assets earn a specific rate of income, regardless of their actual return, and means test how much pension a person receives as well as eligibility for the Commonwealth Seniors Health Card (CSHC) and aged care fees. If the rates change and some people are deemed to earn more, this will affect how much pension they could take home, or even the concessions they are eligible for under the CSHC. Read more from The Senior Last year, the federal government announced an extension of the deeming rate freeze until June 30, 2025, but no additional extension was announced in this year's budget - meaning thousands of pensioners could see a change in their bank accounts come July 1. The Senior sent questions to Social Services Minister Tanya Plibersek but a department spokesperson responded, seemingly confirming the freeze is to end. "The Government has frozen the deeming rates until June 30, 2025," the spokesperson said. "Regardless of the end of the freeze, the deeming rates can only be changed by a decision of the Minister for Social Services. There has been no decision to change the deeming rates from their current levels." The spokesperson's comments echoed comments those from former Social Services Minister Amanda Rishworth, just prior to Federal Election in May. "The expiry of the deeming rates freeze does not mean the deeming rates will increase automatically after 30 June, 2025. A decision of the Government would be required to change the deeming rate settings." Deeming rates have remained steady at 0.25 per cent for the first $62,600 worth of assets for single pensioners, and 2.25 per cent for anything above that threshold since the freeze was put in place. However, the Reserve Bank cash rate has risen considerably over the past five years. It sat at 0.25 per cent in May 2020 but currently sits at 3.85 per cent. It had risen to 4.10 per cent prior to a cut to the cash rate on May 20. National Seniors has also called for the scrapping of the work bonus, which determines how much someone on the Age Pension can earn before it affects their pension. Instead, the organisation would like to see workers claim a full pension and then pay a reasonable tax rate on top of that. But the Social Services spokesperson said income and asset tests were an important part of the system. "Australia's social security system is a non-contributory resident-based system. For this reason, payments including the Age Pension are targeted to those most in need through income and asset tests," they said. "The Work Bonus benefits Age Pensioners who can and want to work, by disregarding the first $300 they earn from employment each fortnight from the income test. "Pensioners can build up any unused amount of the $300 in a Work Bonus income bank, up to a maximum of $11,800, to offset future work." Share your thoughts in the comments below, or send a Letter to the Editor by CLICKING HERE. Asset tests affecting age pensioners look set to change in weeks with a freeze on deeming rates to end, despite advocacy groups calling for an extension as Australians struggle with the cost-of-living. Deeming rules assume financial assets earn a specific rate of income, regardless of their actual return, and means test how much pension a person receives as well as eligibility for the Commonwealth Seniors Health Card (CSHC) and aged care fees. If the rates change and some people are deemed to earn more, this will affect how much pension they could take home, or even the concessions they are eligible for under the CSHC. Read more from The Senior Last year, the federal government announced an extension of the deeming rate freeze until June 30, 2025, but no additional extension was announced in this year's budget - meaning thousands of pensioners could see a change in their bank accounts come July 1. The Senior sent questions to Social Services Minister Tanya Plibersek but a department spokesperson responded, seemingly confirming the freeze is to end. "The Government has frozen the deeming rates until June 30, 2025," the spokesperson said. "Regardless of the end of the freeze, the deeming rates can only be changed by a decision of the Minister for Social Services. There has been no decision to change the deeming rates from their current levels." The spokesperson's comments echoed comments those from former Social Services Minister Amanda Rishworth, just prior to Federal Election in May. "The expiry of the deeming rates freeze does not mean the deeming rates will increase automatically after 30 June, 2025. A decision of the Government would be required to change the deeming rate settings." Deeming rates have remained steady at 0.25 per cent for the first $62,600 worth of assets for single pensioners, and 2.25 per cent for anything above that threshold since the freeze was put in place. However, the Reserve Bank cash rate has risen considerably over the past five years. It sat at 0.25 per cent in May 2020 but currently sits at 3.85 per cent. It had risen to 4.10 per cent prior to a cut to the cash rate on May 20. National Seniors has also called for the scrapping of the work bonus, which determines how much someone on the Age Pension can earn before it affects their pension. Instead, the organisation would like to see workers claim a full pension and then pay a reasonable tax rate on top of that. But the Social Services spokesperson said income and asset tests were an important part of the system. "Australia's social security system is a non-contributory resident-based system. For this reason, payments including the Age Pension are targeted to those most in need through income and asset tests," they said. "The Work Bonus benefits Age Pensioners who can and want to work, by disregarding the first $300 they earn from employment each fortnight from the income test. "Pensioners can build up any unused amount of the $300 in a Work Bonus income bank, up to a maximum of $11,800, to offset future work." Share your thoughts in the comments below, or send a Letter to the Editor by CLICKING HERE. Asset tests affecting age pensioners look set to change in weeks with a freeze on deeming rates to end, despite advocacy groups calling for an extension as Australians struggle with the cost-of-living. Deeming rules assume financial assets earn a specific rate of income, regardless of their actual return, and means test how much pension a person receives as well as eligibility for the Commonwealth Seniors Health Card (CSHC) and aged care fees. If the rates change and some people are deemed to earn more, this will affect how much pension they could take home, or even the concessions they are eligible for under the CSHC. Read more from The Senior Last year, the federal government announced an extension of the deeming rate freeze until June 30, 2025, but no additional extension was announced in this year's budget - meaning thousands of pensioners could see a change in their bank accounts come July 1. The Senior sent questions to Social Services Minister Tanya Plibersek but a department spokesperson responded, seemingly confirming the freeze is to end. "The Government has frozen the deeming rates until June 30, 2025," the spokesperson said. "Regardless of the end of the freeze, the deeming rates can only be changed by a decision of the Minister for Social Services. There has been no decision to change the deeming rates from their current levels." The spokesperson's comments echoed comments those from former Social Services Minister Amanda Rishworth, just prior to Federal Election in May. "The expiry of the deeming rates freeze does not mean the deeming rates will increase automatically after 30 June, 2025. A decision of the Government would be required to change the deeming rate settings." Deeming rates have remained steady at 0.25 per cent for the first $62,600 worth of assets for single pensioners, and 2.25 per cent for anything above that threshold since the freeze was put in place. However, the Reserve Bank cash rate has risen considerably over the past five years. It sat at 0.25 per cent in May 2020 but currently sits at 3.85 per cent. It had risen to 4.10 per cent prior to a cut to the cash rate on May 20. National Seniors has also called for the scrapping of the work bonus, which determines how much someone on the Age Pension can earn before it affects their pension. Instead, the organisation would like to see workers claim a full pension and then pay a reasonable tax rate on top of that. But the Social Services spokesperson said income and asset tests were an important part of the system. "Australia's social security system is a non-contributory resident-based system. For this reason, payments including the Age Pension are targeted to those most in need through income and asset tests," they said. "The Work Bonus benefits Age Pensioners who can and want to work, by disregarding the first $300 they earn from employment each fortnight from the income test. "Pensioners can build up any unused amount of the $300 in a Work Bonus income bank, up to a maximum of $11,800, to offset future work." Share your thoughts in the comments below, or send a Letter to the Editor by CLICKING HERE. Asset tests affecting age pensioners look set to change in weeks with a freeze on deeming rates to end, despite advocacy groups calling for an extension as Australians struggle with the cost-of-living. Deeming rules assume financial assets earn a specific rate of income, regardless of their actual return, and means test how much pension a person receives as well as eligibility for the Commonwealth Seniors Health Card (CSHC) and aged care fees. If the rates change and some people are deemed to earn more, this will affect how much pension they could take home, or even the concessions they are eligible for under the CSHC. Read more from The Senior Last year, the federal government announced an extension of the deeming rate freeze until June 30, 2025, but no additional extension was announced in this year's budget - meaning thousands of pensioners could see a change in their bank accounts come July 1. The Senior sent questions to Social Services Minister Tanya Plibersek but a department spokesperson responded, seemingly confirming the freeze is to end. "The Government has frozen the deeming rates until June 30, 2025," the spokesperson said. "Regardless of the end of the freeze, the deeming rates can only be changed by a decision of the Minister for Social Services. There has been no decision to change the deeming rates from their current levels." The spokesperson's comments echoed comments those from former Social Services Minister Amanda Rishworth, just prior to Federal Election in May. "The expiry of the deeming rates freeze does not mean the deeming rates will increase automatically after 30 June, 2025. A decision of the Government would be required to change the deeming rate settings." Deeming rates have remained steady at 0.25 per cent for the first $62,600 worth of assets for single pensioners, and 2.25 per cent for anything above that threshold since the freeze was put in place. However, the Reserve Bank cash rate has risen considerably over the past five years. It sat at 0.25 per cent in May 2020 but currently sits at 3.85 per cent. It had risen to 4.10 per cent prior to a cut to the cash rate on May 20. National Seniors has also called for the scrapping of the work bonus, which determines how much someone on the Age Pension can earn before it affects their pension. Instead, the organisation would like to see workers claim a full pension and then pay a reasonable tax rate on top of that. But the Social Services spokesperson said income and asset tests were an important part of the system. "Australia's social security system is a non-contributory resident-based system. For this reason, payments including the Age Pension are targeted to those most in need through income and asset tests," they said. "The Work Bonus benefits Age Pensioners who can and want to work, by disregarding the first $300 they earn from employment each fortnight from the income test. "Pensioners can build up any unused amount of the $300 in a Work Bonus income bank, up to a maximum of $11,800, to offset future work." Share your thoughts in the comments below, or send a Letter to the Editor by CLICKING HERE.
Yahoo
05-05-2025
- Business
- Yahoo
Centrelink $4,000 boost Aussies can get now: ‘Keep more of your payment'
Aussies claiming the Age Pension can get a 'one-off boost' of $4,000 through the Work Bonus scheme. The Work Bonus allows older Aussies to earn more income from working without it reducing their Centrelink payments, with Aussies able to start work 'straight away' if they want. Services Australia has issued a reminder about the scheme and how it could help you 'keep more of your payment'. You would be eligible if you're over the age of 67 and collecting the Age Pension, Disability Support Pension or Carer Payment. 'The Work Bonus automatically exempts $300 per fortnight you earn from work. Every fortnight you aren't working or have been paid less than $300 from work, you are contributing to your Work Bonus balance,' Services Australia community services officer Justin Bott explained. 'This balance can grow until it reaches a maximum of $11,800.' RELATED $3,300 Centrelink change that would leave thousands of pensioners worse off: 'Pile on more pain' Tax cuts, HECS debts, Medicare boost: All the major cost-of-living relief coming for millions of Aussies Intimidating salary now needed to afford a home in Australia If you are claiming an eligible pension for the first time, you will automatically start with a Work Bonus balance of $4,000. 'That means you could start work straight away if you wanted, and earn over $4,000 in your pocket before you see any change to your pension rate,' Bott said. 'If you earn more than $300 from work in a single fortnight, any extra income is offset against your Work Bonus Balance. Your pension payment doesn't change until your work bonus balance is reduced to $0.' The Work Bonus isn't money that you can draw on to use for other things. Instead, you use it to keep more of your pension if you are working. Bott gave the example of someone with a Work Bonus balance of $7,900 who returned to work after six months off. He was paid $750 in eligible income in his first fortnight. Services Australia would deduct the $300 fortnightly Work Bonus and then reduce the remaining $450 of income using his Work Bonus balance. This would reduce his Work Bonus balance to $7,450 and his pension payment would not be impacted. Assuming he continued working and being paid $750 a fortnight, it would take around 16 fortnights before his pension was affected by his wages. You don't need to apply for the Work Bonus. You just have to let Centrelink know of any income you receive from work. The Work Bonus is on top of the pension income test free area. Single pensioners can currently earn up to $212 a fortnight of income from any source and still be eligible for the full pension, couples can receive up to $372 a fortnight. The Work Bonus, which only applies to income from paid employment, adds an extra $300 per fortnight. That means singles can earn a combined income of $512 a fortnight and couples $672 a fortnight without it affecting their pension.
