The Pension Bonus Scheme paid a one-off, tax-free lump sum to people who kept working past Age Pension age and put off claiming the Age Pension. It closed to new members in 2009, so it now applies only to a small and shrinking group of people who registered before the scheme closed.
This guide explains who can still claim the Pension Bonus, how much it is worth from 20 September 2026 and how to claim it.
What is the Pension Bonus Scheme?
The Pension Bonus Scheme rewarded people who reached Age Pension age, kept working and delayed claiming the pension. Members build up bonus periods while they meet the work test, then receive their bonus when they claim the Age Pension and Pension Bonus.
The scheme closed to new members on 20 September 2009, when it was replaced by the Work Bonus. Only people who had already reached Age Pension age before that date could join, and late registrations ended in 2014.
Who can still claim the Pension Bonus?
To be paid the Pension Bonus, you generally need to:
- be a registered member of the scheme
- qualify for the Age Pension when you claim your bonus
- not have received an income support payment since qualifying for the Age Pension, apart from Carer Payment or Carer Service Pension
- have met the work test for at least 12 months. This generally requires at least 960 hours of eligible work in each 12-month bonus period, including at least 640 hours in Australia. Paid and unpaid leave do not count towards the 960 hours.
If you and your partner are both members, only one of you needs to meet the work test, although your hours cannot be combined.
The bonus can build up for a maximum of five years, and generally not past age 75. The exception is a member building up a bonus through a younger partner who is also in the scheme and has been a member for less than five years.
How much is the Pension Bonus from 20 September 2026?
Your Pension Bonus depends on three things:
- your Age Pension rate when you claim. If you only qualify for a part pension, your bonus is reduced.
- how many years of bonus periods you have built up, from one to five
- whether you were single or part of a couple while you built them up.
The calculation is based on your basic Age Pension rate and does not include additional payments such as Rent Assistance or Pension Supplement.
The table below shows the maximum amounts from 20 September 2026. They are indexed each 20 March and 20 September.
| Years of bonus periods | Maximum Pension Bonus (single) | Maximum Pension Bonus (member of a couple, each) |
|---|---|---|
| 1 | $2,849.90 | $2,153.70 |
| 2 | $11,399.80 | $8,614.60 |
| 3 | $25,649.50 | $19,382.90 |
| 4 | $45,599.20 | $34,458.40 |
| 5 | $71,248.70 | $53,841.30 |
Source: Department of Social Services. Amounts apply from 20 September 2026.
Common questions about the Pension Bonus Scheme
You must claim your Pension Bonus at the same time as you claim the Age Pension. You generally need to claim within 13 weeks of stopping meeting the work test or within 13 weeks of a period of non-accruing membership ending. If you claim later, your bonus may be reduced or not paid, although exceptions can apply in special circumstances.
No. They are separate schemes and you cannot be a member of both. The Department of Veterans’ Affairs has more information about its Pension Bonus Scheme.
The Pension Bonus is not paid to the member’s estate. However, their surviving partner may be eligible for a Pension Bonus Bereavement Payment. A claim should generally be made within 26 weeks of the member’s death.
Summary
The Pension Bonus Scheme pays a one-off, tax-free lump sum to registered members who kept working past Age Pension age and delayed claiming the pension. It closed to new members in 2009, so it now applies only to existing registered members. If you are still a member, you claim the bonus at the same time as you claim the Age Pension.
The information in this article is general in nature.