Over the years, I’ve heard plenty of myths about Age Pension. Some are harmless misunderstandings, while others can lead people to miss out on information they need.
Myth 1) Services Australia knows everything
One myth is that we already know everything about you. We don’t. If something changes in your life, you need to let us know so we can pay you the right amount.
That might be a change to your address, relationship status, work, or travel plans. Telling us early can help you avoid being paid too much or not enough.
Myth 2) myGov holds your information
Another common myth is that myGov keeps all your information and shares it with every service you have linked. It doesn’t work that way. myGov only holds limited information about you. Each service keeps its own customer records, and there are rules about how your personal information can be shared.
You can update some details in myGov, such as your address, and choose to share them with participating services. But for other details, like your bank account, you still need to update each service directly.
Myth 3) You can’t work and get a pension
Some people also think they can’t work if they get Age Pension. You can. The Pension income test and the Work Bonus can help you keep more of your pension when you earn money from work.
The Work Bonus isn’t an extra payment. It reduces how much of your employment income we count under the income test.
We don’t count the first $300 you earn from work each fortnight. If you earn more than that, the extra amount can use part of your Work Bonus balance before it affects your pension. If you do not work, or you earn less than $300 in a fortnight, the unused amount can build up to a maximum balance of $11,800. You don’t need to apply for the Work Bonus. You just need to tell us your income.
Myth 4) You can’t give anything away
There is also a myth that Age Pensioners can’t give gifts. You can give away cash or other assets if you choose to. But gifting can affect how we work out your payment, so you need to tell us when you give a gift.
Myth 5) You can’t go overseas
You can travel overseas while getting Age Pension. Whether you can get your Age Pension while you’re overseas and how much you’ll be paid depends on your circumstances. If you’re going for less than 6 weeks, you usually don’t need to tell us before you go. If you plan to be away for more than 6 weeks, tell us before you leave Australia.
These rules are subject to change by the government.
If you’re unsure what applies to you, visit the Services Australia website.
Hank Jongen
General Manager
Services Australia