The bonus is a one-off lump sum payment made to you when you stop working. It is available, subject to various criteria, to people who are eligible for the Age Pension (or an equivalent Department of Veterans’ Affairs payment) but prefer to keep working after reaching pension age.

From 1 January 2008, there will be a number of changes to the PBS to make it more attractive for people of Age Pension age to remain in paid employment for longer.

Key changes from January 2008
• Changes to the income and assets test may entitle you to a top-up of the pension bonus.
• A new payment will be introduced for pensioners whose partner has died and did not claim the Age Pension or pension bonus in their lifetime.

Eligibility criteria for PBS
• You must be aged over 65 (for men) and over 63.5 years (for women), and under 75 years of age. The bonus cannot be accrued after 75 years of age.
• You must delay retirement for at least one year after reaching pension age.
• You need to register for the scheme. This should be done as soon as you reach pension age.
• You need to work for a minimum of 960 hours for at least one year after you register.
• If you have a partner, you must both register for the scheme individually.

Under the PBS, eligible persons may be entitled to receive a one-off bonus payment, which is paid as a tax-free lump sum.

The maximum amount of the pension bonus is shown in the table below.

For more information about eligibility and registration for the PBS, please contact us or visit www.centrelink.gov.au.