Port Phillip Group - Accounting

Accounting

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Centrelink Benefits - How Work Affects Your Payments

You are probably aware that if you work, your Centrelink benefit may be reduced. It is important to remember though, that if you received paid work, you will almost always be better off financially.

Even by taking up casual or part-time work you will improve your future job prospects, gain confidence, and increase your work-related skills. You may still qualify for some payment while you are working.

Fortnightly Income	Centrelink Payments Reduced by
$0 - $150 (plus $24.80 for each additional child) - this is called free area	Nil
Above the free area	50 cents for each dollar above the free area

There are incentives to keep working, known as:-

"Working Credit" - (Under Age Pension age)

and

"Work Bonus" - (Over Age Pensions age)

There isn't space here to explain them.

When your earnings reduce your payments

If earnings reduce the Centrelink benefit to nil, continue to report your earnings to retain your concession card entitlement for up to 12 week, and
Family Tax Benefit (Part A) or Child Care Benefit, will continue to be paid at the same rate during this time

As a Centrelink payment is considered taxable income, you may have to pay some tax if you start work.