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Welcome

Taxation - Individuals

Superannuation

Taxation - Business

Social Security

Social Security

Increase to the Pension work Bonus from $250 to $300 per Fortnight
The Pension Work Bonus is an income test concession for age pensioners and Veterans' Affairs pensioners. Currently, the first $250 of employment income a fortnight is not counted in the Age Pension income test.

From 1 July 2019, the Government plans to increase the Pension Work Bonus from $250 to $300 per fortnight and extend eligibility to those who are self-employed rather than only the employed.

To ensure the Work Bonus only applies to those actually engaged in gainful work, there will be a 'personal exertion' test. This means the Work Bonus would not apply to income associated with returns on financial or real estate investments.

Pensioners will also continue to accrue unused amounts of the fortnightly Work Bonus, which means future earnings can be exempt from the pension income test. The maximum accrual amount will increase to $7,800 (from $6,500).

Goodwin Chivas & Co Commentary
By enabling self-employed clients to utilise this concession, it encourages clients of Age Pension age who are self-employed to continue working.

Carers Allowance Now Means Tested
The Government will introduce a $250,000 family income test threshold to the Carer Allowance payment. The Carer Allowance is currently not means tested. The stated purpose of this income test threshold is to help provide funding for new support services for unpaid carers.

Goodwin Chivas & Co Commentary
The Carer Allowance of $127.10 per fortnight is available to people caring for someone with a disability, severe illness or is frail aged. The benefit is currently not means tested but the carer must satisfy residency tests and the care receiver must meet certain criteria.

The Carer Allowance can be paid in addition to means tested pensions such as the Age Pension and Carer Payment.

Currently, if a carer receives the Carer Allowance on 1 July they may also be eligible for a Carer Supplement of up to $600 pa. Affected carers who fail the income test under this proposal may stand to lose the Carer Allowance and the Carer Supplement.

If you wish to discuss these measures, please don't hesitate to contact our offices for more information.