The Australian Pension Bonus Scheme (PBS) is making a comeback in 2024, offering tax-free lump-sum payments to eligible older Australians who postpone claiming their Age Pension and continue working.
This scheme, originally introduced in 1998, aims to encourage seniors to remain in the workforce longer. Here’s everything you need to know about the resumption of the PBS, including eligibility, bonus amounts, and key dates.
Australia Resuming Pension Bonus Scheme 2024
The PBS was closed to new registrations in 2014, but the Department of Veterans Affairs has decided to resume it for new participants in 2024. This decision reflects an effort to adapt to changes in the job market and the pension system. The new iteration of the PBS might focus on existing members who joined before the 2014 closure, with official details expected to be released soon.
Eligibility
To qualify for the Australia Resuming Pension Bonus Scheme, participants must meet specific criteria, including:
- Deferral of Age Pension: Individuals must delay claiming their Age Pension after reaching the eligible age. The minimum deferral period is likely to be one year.
- Working Hours: Participants must meet a minimum number of working hours during the deferral period. This is anticipated to be an average of 20 hours per week for at least 12 months, totaling 640 hours within Australia.
- Income Support Restrictions: There will be certain income support restrictions in place, which will be detailed on the Service Australia or Department of Veterans Affairs websites.
Bonus Amounts
The amount received under the PBS depends on the number of qualifying bonus periods accrued. Here is a breakdown of potential bonus amounts:
| Number of Qualifying Bonus Periods | Bonus Amount |
|---|---|
| 1 year | $2,440.80 |
| 2 years | $9,763.30 |
| 3 years | $21,976.40 |
| 4 years | $39,053.20 |
| 5 years | $56,139.00 |
Each qualifying bonus period represents one year of deferring your Age Pension claim while meeting the minimum work requirements. The maximum bonus amount is achievable by deferring your Age Pension claim for five years and fulfilling the work requirements throughout that period.
Key Dates
- Initial Introduction: The PBS was originally introduced on July 1, 1998.
- Scheme Closure: The scheme closed to new registrations in July 2014.
- Potential Revival: Discussions are ongoing about reviving the scheme for existing members who joined before the 2014 closure. Official dates and details for the resumption in 2024 have yet to be confirmed.
The resumption of the Australia Pension Bonus Scheme aims to offer financial incentives for delaying Age Pension claims, thus extending the working life of eligible individuals. This could help address labor shortages in specific sectors and contribute to economic growth.
By providing a bonus payment as a financial top-up to the Age Pension, the scheme aims to increase the overall retirement income of participants, leading to a more financially secure retirement.
FAQs
Who is eligible for the resuming Pension Bonus Scheme?
Participants who joined the scheme before its closure in 2014 and meet the new eligibility criteria.
What are the required working hours for eligibility?
An average of 20 hours per week for at least 12 months, totaling 640 hours.
How much can I receive from the Pension Bonus Scheme?
The bonus ranges from $2,440.80 for one year to $56,139.00 for five years of deferred Age Pension claims.
When will the scheme be officially resumed?
Exact dates are yet to be confirmed, but discussions are ongoing for a 2024 revival.
Where can I find more information about the scheme?
Check the Service Australia or Department of Veterans Affairs websites for updates and detailed information.
