Types of income we apply the Work Bonus to

We apply the Work Bonus to employment and self-employment income. You need to tell us how much you earn so we can apply the Work Bonus and income test.

The Work Bonus doesn’t apply to income from your investments.

We apply the Work Bonus to employment income you get from:

  • working in and outside Australia
  • paid leave while still employed
  • director’s fees
  • self-employment, that involves active participation.

We don’t apply it to income you get from:

  • leave after you’ve ended your employment
  • self-employment, that doesn’t involve active participation
  • investments
  • superannuation.

We use your level of active participation to decide if we can use the Work Bonus for your income from:

  • sole traders
  • partnerships
  • private companies
  • private trusts.

Active participation

Active participation means you’re doing work that involves effort. This is the opposite of income from passive involvement.

Examples of work involving active participation include:

  • bookkeeping
  • lawn mowing
  • plumbing.

Active participation doesn’t include managing an investment portfolio or rental properties owned by:

  • you
  • a family trust
  • a family company.
Page last updated: 1 January 2024.
QC 51987