From July 1 additional incentives will apply for veterans, war widows and widowers over the relevant pension age to remain in the work force.
Minster for Veterans’ Affairs, Mr Warren Snowdon said The Work Bonus Scheme will allow eligible income support pensioners to undertake some paid work with a reduced effect to their pension.
Changes to the Work Bonus Scheme will mean that the first $250 per fortnight of income earned by eligible service pensioners, income support supplement recipients and age pensioners paid by the Department of Veterans’ Affairs, will be excluded from the income test.
Any unused amounts of the $250 exemption will accrue in a Work Bonus Bank, up to a maximum of $6,500, which can then be used to offset future employment income.
“This Scheme is about supporting members of the veteran community to take-up some paid work or return to the work force, if they choose to, and alleviating concerns about how the extra income will affect their pension,” Mr Snowdon said.
To be eligible, a veteran or war widow/er must be of qualifying pension age and over and be receiving an employment income. Work can be casual or permanent, part time or full-time or any variation.
Pensioners must advise the Department of Veterans’ Affairs of any new employment income within 14 days of commencing employment.
Mr Snowdon said the Australian Government is committed to supporting initiatives that improve the financial welfare of Australia’s veteran community.
“The Work Bonus Scheme was one of the improvements the Government made as part of its Secure and Sustainable Pension Reform package introduced in 2009,” Mr Snowdon said.
For more information on the Work Bonus Scheme or the Work Bonus Bank visit the factsheets page on the DVA website www.dva.gov.au or call 133 254 (metro areas) or 1800 026 185 for regional callers.