Basic Conditions of Eligibility

• Allows people who work and defer claiming Age Pension to earn a one-off-tax-free lump sum bonus.
• The Pension Bonus Scheme is closed to new entrants who did not qualify for Age Pension before 20 September 2009.
• Existing members may remain in the scheme and continue to accrue entitlements if they or their member partner continue to work 960 hours per year.
• Must register before a bonus can be accrued. Earliest registration is the date when age and residence requirements for Age Pension are met.
• Members not working who rely on their non-member partner's employment to remain in the scheme are no longer able to do so. Bonus will generally need to be claimed within 13 weeks of 20 September 2009.
• Maximum bonus accrual period is five years.
• Cannot accrue bonus after age 75.
• Must meet work test of at least 960 hours of paid work each year for a minimum of 12 months from registration.
• Not paid if receiving income support (except Carer Payment) after meeting age and residency requirements for Age Pensions rates.
• Can be affected by 'gifting rules' if more than $10,000 is given away in a single year or more than $30,000 over a five-year period.  

   

Basic Rates

• Members claim bonus when they eventually claim Age Pension.
• Amount of bonus is based on how long a person defers pension from the date of registration, and rate of pension payable at time of claim.
• Rate if maximum pension payable

 Disclaimer: This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in this article is for guidance only and should not be relied upon without obtaining professional advice having regard to your specific circumstances.
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