Claiming the Pension Bonus 065-07010000

The PBS is a tax free lump sum payment for registered members of the Pension Bonus Scheme who have deferred claiming Age Pension and stayed in paid work.

The scheme is voluntary and allows registered members to keep working and accrue periods of work that count toward a lump sum bonus when they stop working and claim Age Pension.

Customer need to claim their Pension Bonus at the same time they claim Age Pension. If they cannot get Age Pension, they cannot get a bonus.

To be eligible for a PBP a person must have registered for the PBS before 1 July 2014.

Customers must not have received Age Pension or any other income support payment other than Carer Payment since qualifying for Age Pension and meet the work test rules for at least 12 months from the date their membership in the scheme started.

Customers must also satisfy residence requirements and be:

• an Australian resident on the day they lodge their claim, and
• physically present in Australia on the day they lodge their claim

Customers who have lived worked in a country with which Australia has an international social security agreement, may meet agreement provisions to meet residence requirements when they registered in the scheme. Customers can, however, not be paid if they use those provisions when they wish to claim the bonus.

A customer who has received a Pension Bonus payment may be entitled to a PBTP if their Age Pension entitlement increases within the 13 weeks after grant of Age Pension and the increase is due to a reduction in the assessment of their income or assets.

The PBTP was implemented for all Age Pension customers granted with a commencement date on or after 1 January 2008. PBTP is a tax free payment. The PBTP is not a second bonus payment, it is a recalculation of the original bonus amount. Note: The PBTP does not apply to Pension Bonus Bereavement Payment (PBBP).