Commencing or returning to work for Age Pension 065-03060010

If an Age Pension customer or their partner commences or returns to work they must advise Centrelink within 14 days of being paid. The customer must supply the following:

• date they were paid
• employer's name, address and phone number
• gross employment income paid per week/fortnight (including salary sacrifice into superannuation or assessable fringe benefits)
• if employment is casual or part time
• if partnered, any payment that the partner is receiving

Age Pension customers who have commenced or returned to work or have ceased employment are able to update their employment status through their Centrelink online account or Express Plus Centrelink mobile app. This service will automatically update their reporting requirement.

Eligible customers can also update their partner's employment status when the partner:

• does not receive an income support payment
• receives an income support payment other than Disability Support Pension and has given the customer permission to enquire
• receives Age Pension (Blind) or Disability Support Pension (Blind) with Rent Assistance

Genuine attempts must be made to transition customers to report via self service options before assisted reporting is completed, unless an Exception applies.

The Online estimator options can be used by customers and Service Officers to show how the customer's payments will be affected by a change in income.

When a customer has employment income (including salary sacrifice into superannuation or assessable fringe benefits) and:

• they are over Age Pension age and in receipt of a pension, they may be entitled to the Work Bonus. Work Bonus only applies to the customer’s own employment income – however, partners may still benefit by the reduction in total income. Note: customers paid under the transitional rules for pension customers are not eligible for the Work Bonus and therefore their partner’s rate is not affected
• their partner is under Age Pension age and receives a payment with access to Working Credit, the partner may use their working credits to offset their employment income. The Age Pension customer is not eligible for Working Credit as they are over Age Pension age
• receives Age Pension, the customer may be able to have their payment suspended for up to 2 years if their Australian employment income still precludes them from payment at the end of the employment income nil rate period

If an Age Pension customer is in, or is entering, an employment income nil rate period and they ask about eligibility for other payments, they are to be offered the choice of cancellation or an employment income nil rate period. The customer should be advised of the benefits and disadvantages of each:

• Cancellation - Pensioner Concession Card (PCC) is cancelled but the customer may access the Commonwealth Seniors Health Care Card (CSHC). The customer needs to reclaim when payable
• Nil rate period - PCC remains current but the customer may miss out on bonuses targeted to pensioners being paid and CSHC holders only. The customer will not need to reclaim Age Pension if it becomes payable before the end of 12 fortnights and 13 days. If the customer is eligible to enter an extended employment suspension period, their payment will be suspended automatically and can remain suspended for up to 2 years. The customer can request a restoration of their payment within this time without needing to reclaim. The customer can also keep their Pensioner Concession Card while suspended. If the customer chooses to access this option, the customer must continue reporting as usual. Do not manually code a suspension. For more information about the extended employment suspension period, see Extended suspension periods for pension payments

From 7 December 2020, Age Pension customers have employment income assessed in the fortnight it is taken to be paid. For more information, see Recording and correcting employment income details.

Age Pension customers are generally to be placed on 2 weekly reporting for both continuous and varying ongoing employment income. Some exceptions apply.

Employment income is assessed under the Pensions Income Test.

For partnered customers, the system automatically applies half the combined total ordinary income of the couple to each, regardless of whether their partner receives a Centrelink payment. This means that if combined income is above the allowable amount for a couple under the pension Income Test, the customer's pension will be reduced by 25 cents for each dollar above that amount (instead of 50 cents per dollar for a single pensioner).

If the customer is receiving payment under the transitional rules for pension customers, the reduction of 20c for a partnered pensioners or 40c per dollar for a single pensioner will stay in place until the customer is no worse off under the current pension Income Test.

If an Age Pension customer loses payability because they have employment income which precludes them from payment, the customer will initially enter an employment income nil rate period. From 1 January 2023, if the customer’s Australian employment income still precludes them from payment at the end of the employment income nil rate period, their payment will be suspended automatically and can remain suspended for 2 years from the first day their rate of payment reduced to zero. This includes where the customer’s employment income nil rate period commenced before 1 January 2023. This suspension will apply automatically and must not be coded manually. If they have a partner who receives Age Pension, Disability Support Pension or Carer Payment, their partner’s payment will also be automatically suspended for 2 years. These records will have a benefit status of SUS-ESP or SUS-EPP. An Age Pension customer may also become suspended with reason EPP if their partner receives DSP or an eligible DVA payment, and their partner enters an extended employment suspension period.

Eligible DVA payments are DVA Age Pension, Invalidity Service Pension, Income Support Supplement and Veteran Payment.

If the customer and their partner (if applicable) becomes payable again within the 2 year suspension period, they can request to have their payment restored instead of completing a new claim. If the customer requests a restoration but is still not payable for any reason (for example, income or assets over the limit) they are still eligible to remain suspended for the remainder of the 2 year period. Both the customer and the partner (if applicable) must individually request a restoration, unless one member of the couple has the appropriate authority to request a restoration on behalf of the other member of the couple.

If a customer (and their partner if applicable) have not had their payment restored before the end of the 2 year suspension period, their payment will automatically cancel with reason ESP or EPP. If they want to receive payment again, a new claim is required.

If the customer's partner receives:

• a Centrelink pension, half the couple's combined total ordinary income will be applied to each customer's payment separately
• a Centrelink allowance such as JobSeeker Payment or Parenting Payment, half the combined total ordinary income will be assessed for the partner under the Allowance Income and Asset Tests
• Special Benefit (SpB), half the combined income will reduce the partner's SpB as a direct deduction

Customers receiving Age Pension are not entitled to a Special Employment Advance.