Work Bonus Calculator — Age Pension Earnings
Calculate how much you can earn from work without losing Age Pension under the Centrelink Work Bonus 2026 rules — $300/fortnight free area, $11,800 income bank, plus $4,000 starting credit for new pensioners.
| Work earnings this fortnight | — |
| Work Bonus exempt amount ($300 free area) | $300 |
| Income Bank used to offset | — |
| Income counted against pension | — |
| Pension taper rate (50¢ per $1) | — |
What Is the Centrelink Work Bonus?
The Work Bonus is a Centrelink rule that lets Age Pension, Disability Support Pension (over Age Pension age), and Carer Payment recipients earn money from paid work without losing their full pension. Each fortnight, the first $300 of work income is fully exempt from the Age Pension income test. Any unused portion of that $300 accumulates in your "Work Bonus income bank" up to a maximum of $11,800, and can offset higher-earning fortnights. Investment income, superannuation drawdowns, rental income, and gifts are NOT eligible for Work Bonus — only paid employment and self-employment from gainful work activities count (source: Services Australia Work Bonus).
Since December 2022, new pension claimants automatically start with a $4,000 Work Bonus income bank. This was permanent legislation made in 2024, doubling from the previous one-off $4,000 boost. The income bank persists across years and resets on age-pension cancellation; it's a use-it-or-lose-it benefit you should actively claim.
How the 2026 Math Works
For each fortnight you receive Age Pension and have work income: (1) Take your fortnightly work income; (2) Subtract $300 (free area) — the rest is "excess work income"; (3) Apply your Work Bonus income bank balance to reduce excess to zero where possible — bank reduces dollar-for-dollar; (4) Any remaining excess is added to the income test, with each $1 over the income-test threshold reducing pension by 50¢ (single) or 25¢ each (couple combined) per the standard pension taper rate.
Worked example 2026: Single Age Pension recipient earns $600 from part-time work this fortnight. Step 1: $600 work income. Step 2: $600 − $300 free area = $300 excess. Step 3: Work Bonus income bank has $2,000 — apply $300 from bank to offset, bank now $1,700. Step 4: Net excess work income for income test = $0. So this $600 of work income reduces no pension. By contrast, a retiree earning $600 from share dividends gets no exemption — full $600 hits the income test (above the single threshold $212/fortnight in 2026), reducing pension by ($600 − $212) × 50% = $194/fortnight.
Common Mistakes That Cost Pension Dollars
(1) Not declaring earnings via Centrelink Online or the Express App every fortnight — Services Australia matches employer Single Touch Payroll data, and undeclared income triggers debt recovery. (2) Confusing Work Bonus with the income test free area — they stack: a single pensioner gets $212/fortnight income test free + $300/fortnight Work Bonus on top of that for work income only. (3) Letting the income bank accumulate without using it — the bank caps at $11,800; once full, additional unused free area is wasted. Plan a 1-2 week intensive work period each year to draw down the bank.
For other Australian retirement tools, see our Age Pension assets/income test, super balance projector, concessional vs non-concessional super, and pension drawdown rate.
Last updated April 2026. Estimates only — confirm current Work Bonus rules and income bank balance via your myGov account at servicesaustralia.gov.au. Sources: Services Australia, DSS Income Support Guide.