Commencing or returning to work for Age Pension 065-03060010

Customers receiving Age Pension may be eligible for the Work Bonus unless they are receiving payment under the transitional rules for pension customers. However, the Work Bonus will still be used in the comparison calculations and partners may still benefit by the reduction in total income (i.e. if the customer loses their transitional status). The Age Pension customer is not eligible for Working Credit as they are over Age Pension age.

Promote to customer that they can report their or their partner’s employment income and update their employment status online when they have started or have ceased employment through their Centrelink Online account or the Express Plus Centrelink mobile app.

When assisting a customer to report, make a genuine attempt to transition them to reporting via self service options, unless an Exception applies.

Obtain the following details from the customer when they are unable to update details online:

• date they or their partner will be paid
• employer's name, address and phone number
• gross employment income per week/fortnight
• if employment is casual or part time
• if partnered, any payment that the partner is receiving

Note: DOC minimum standards only require the collection and recording of enough information about the employer (e.g. contact name and address or phone number) to allow income assessment, as well as contact with the employer if necessary. Contact may be necessary for verification of the income details provided, or for conducting reviews resulting from Data matching with the Australian Taxation Office (ATO). Some customers (e.g. those who work in sensitive areas like women's refuges, etc.) may not want all employment details (e.g. business name) recorded on a DOC. This does not affect the requirement to collect sufficient information for assessment or review purposes.

Is the customer notifying before they or their partner have been paid?

• Yes, go to Step 2
• No, go to Step 3

Customers are required to report 2 weekly if they and/or their partner have ongoing employment income, unless one of the following reporting exceptions applies:

• the customer’s record is in Environment I, or
• the customer’s (or if partnered the couple’s) only employment income is either regular Australian Disability Enterprises (ADE) income or meets the Pension Monthly Exception (MTE) rule

See Recording and correcting employment income details for further details of the MTE rule.

Does the customer (including their partner) meet one of the above exceptions?

• Yes, the customer will remain a notification reporter.
• No, place the customer on 2 weekly reporting. Note: if the partner receives an income support payment and is not already on reporting, place them on 2 weekly reporting also

For information on assisting customers with self-service, see Access Management for Self Service (AMSS) - Staff-assisted access for phone self service and nominees online and Reporting employment income online.

Use the Reporting Regime Details (RPRD) screen to place the customer on statement reporting. For more information see Reporting screens.

Go to Step 4

If a customer is notifying, they or their partner have commenced or returned to work  and were first paid employment income in a previous entitlement period, request all employment income details from the date first paid up until the last EPED.

Customers are required to report 2 weekly if they and/or their partner have ongoing employment income, unless one of the following reporting exceptions applies:

• the customer’s record is in Environment I, or
• the customer’s (or if partnered the couple’s) only employment income is either regular Australian Disability Enterprises (ADE) income or meets the Pension Monthly Exception (MTE) rule

See Recording and correcting employment income details for further details of the MTE rule.

Does the customer (including their partner) meet one of the above exceptions?

• Yes, the customer will remain a notification reporter
• No, place the customer on 2 weekly reporting. Note: if the partner receives an income support payment and is not already on reporting, place them on 2 weekly reporting also

For information on assisting customers with self-service, see Access Management for Self Service (AMSS) - Staff-assisted access for phone self service and nominees online and Reporting employment income online.

Use the Reporting Regime Details (RPRD) screen to place the customer on statement reporting. For more information see Reporting screens.

Go to Step 4

Is the customer single?

• Yes, go to Step 5
• No, go to Step 6

Employment income for Age Pension customers is assessed under the Pensions Income Test.

Record all employment details (including employment income paid up to the last EPED) via the Earnings and Reporting workflow. Note: if the workflow is unavailable manually update all details on the Employment Income Paid Details (EAPP) screen.

For assessment and coding details, including regular ADE employment income and income assessed under the Pension Monthly Exception (MTE) rule, see Recording and correcting employment income details.

Age Pension may remain current at nil rate for up to 12 fortnights due to the effect of the customer’s employment income. During the employment income nil rate period, customers retain certain benefits, for example a Pension Concession Card (PCC). Customers with 2 weekly reporting requirements need to continue to report.

Has employment income reduced (or will reduce) the customer’s Age Pension to nil and they have asked about other payments they may be eligible for during a nil rate period?

• Yes, go to Step 8
• No, procedure ends here

Record the full amount paid. The system automatically applies half the combined income of the couple to each, regardless of whether their partner receives a Centrelink payment.

If the partner receives a payment with access to Working Credit, they may use their working credits to offset their employment income before the relevant Income test is applied. Half the couple’s combined income will be assessed under the relevant income test for the partner’s payment.

How income will affect Age Pension:

• Paid under the current Income Test - any income over the allowable amount will reduce the pension by 25c per dollar above that amount
• Paid under the transitional rules - any income over the allowable amount will reduce the pension by 20 cents per dollar above that amount
• The customer’s (and if applicable, the partner's) payment may remain current for up to 12 fortnights if reduced to nil by income and some of that income is employment income

For more information, see:

• Pension income and asset tests
• Allowance income and asset tests
• Transitional rules for pension customers who were on payment at 19 September 2009
• Work Bonus and balance for pensioners of Age Pension age
• Working Credit
• Special Benefit (SpB) income and asset tests

Employment income for Age Pension customers is assessed under the Pensions Income Test.

Record all employment details via the Earnings and Reporting workflow. Note: if the workflow is unavailable manually update all details on the Employment Income Paid Details (EAPP) screen.

For customers receiving Family Assistance, check their annual income estimate is reasonable and request a revised estimate, if necessary.

For assessment and coding details, including regular ADE employment income and income assessed under the Pension Monthly Exception (MTE) rule, see Recording and correcting employment income details.

Age Pension may remain current at nil rate for up to 12 fortnights due to the effect of the customer’s and/or their partner’s employment income. During the employment income nil rate period, customers retain certain benefits, for example a Pension Concession Card (PCC). Customers with 2 weekly reporting requirements need to continue to report.

Has employment income reduced (or will reduce) the customer’s Age Pension to nil and they have asked about other payments they may be eligible for during the nil rate period?

• Yes, go to Step 8
• No, procedure ends here

Customer asks about other payments during a nil rate period.

If an Age Pension customer’s rate is or will be nil due to employment income and they have asked about other payments during a nil rate period, offer the choice of cancellation or a nil rate period/suspension.

Advise the customer 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) and Pension Supplement for non-income support recipients. 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. They may also be eligible to have their payment suspended for up to 2 years and keep their Pensioner Concession Card. If the customer is eligible to enter an extended employment suspension period, their payment will be suspended automatically. Do not manually code a suspension. For more information about the extended employment suspension period, see Extended suspension periods for pension payments

If the customer opts to have their Age Pension cancelled, see Step 2 in the Cancellation of Age Pension table in Cancellation of Age Pension for voluntary cancellation of payment.