Hot Issues
spacer
Securely transfer your personal and business information over the Internet
spacer
Centrelink Benefits - How Work Affects Your Payments
spacer
Family Trusts - Complexity Increases, and so will costs
spacer
Do you need to lodge an income tax return?
spacer
Merry Christmas 2011
spacer
Few know exactly what their true financial position is, do you?
spacer
Employee Christmas Parties and Gifts  -  Any FBT?
spacer
FBT - Christmas Parties and Taxi Fares
Article archive
spacer
Quarter 4 October - December 2011
spacer
Quarter 3 July - September 2011
spacer
Quarter 2 April - June 2011
spacer
Quarter 1 January - March 2011
spacer
Quarter 4 October - December 2010
spacer
Quarter 3 July - September 2010
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.

 

 

Copyright © 2010 Gabriel & Partners.
Phone: 61 2 9526 0999 Email: accountants@gabriels.com.au | 84 Cawarra Road, Caringbah, NSW 2229