Pension Bonus Scheme (PBS) 065-07000000

There are 3 payment components to the PBS:

• The Pension Bonus payment - is a payment made when a registered PBS customer claims Age Pension and Pension Bonus and is granted Age Pension.
• A Pension Bonus Top-up payment (PBTP) - is a payment made to customers who have already received a Pension Bonus payment and receive a higher rate of pension within 13 weeks of the start day (date of grant) of their Age Pension, where the increase is due to a reduction in their assessed income or assets. The system automatically determines if the customer is entitled to a top-up of the pension bonus amount previously paid. Note: a customer does not qualify for a top-up payment if the increase in Age Pension rate was solely due to a change in the income or assets limits or maximum pension rate due to Consumer Price Index (CPI) changes.
• Pension Bonus Bereavement Payment (PBBP) - is a payment for the surviving partner of a deceased member of the scheme who died on or after 1/1/08 and had not lodged a claim for Age Pension and the Pension Bonus payment before they passed away. Note: this is not paid to the estate of single registered members of the scheme who died before claiming Age Pension and the Pension Bonus payment.

The PBS commenced 1 July 1998. The Pension Bonus Top-up payment (PBTP) and Pension Bonus Bereavement Payment (PBBP) were implemented from 1 January 2008.

The customer needs to be registered in the PBS and accumulate at least 1 full year bonus period for a pension bonus payment to be payable. A maximum of 5 full year bonus periods can contribute to the bonus. Only the final bonus period can be a part year. Work after age 75 (or age 70 under the DVA scheme) cannot contribute to the bonus. Periods of deferment prior to 1 July 1998 do not count.

Bonus periods must be consecutive, or separated only by periods in which a customer is a non-accruing member. Non-accruing periods extend the normal 12 month bonus period by the length of the non-accruing period. During the accruing periods the customer must satisfy the work test. Note: if a registered member of the scheme is affected by a major disaster such as Cyclone Larry, special rules apply.

The amount of Bonus payable depends on:

• Pension Bonus - rate of basic Age Pension at the start day (date of grant) of Age Pension, the length of time a person was an accruing member in the PBS and the member's relationship status during the time they deferred claiming Age Pension.
• Pension Bonus Top-up payment (PBTP) - a reduction in the assessed value of the person's income and/or assets within the 13 weeks since the PBS start day, that caused an increase in pension rate that was not due to CPI changes.
• Pension Bonus Bereavement Payment (PBBP) - notional rate entitlement to Age Pension immediately before the death of the PBS customer. Note: PBBP employment income, regular compensation payments or lump sum compensation payments of the deceased or their surviving partner are not taken into consideration when working out the notional rate of Age Pension.

A customer may be concurrently registered with both DVA and Centrelink. However, only 1 bonus is ever payable. For more information, customers should contact DVA, see Department of Veterans' Affairs (DVA) for contact details.