In the past, retirement meant completely stepping away from work. But today, for many Australians—especially those from hardworking, family-oriented communities like ours—retirement is more flexible than final.
In fact, over one-third of Australians aged 65–69 are still working or looking for work. Some want to stay active, some want to keep earning, and others simply enjoy the purpose that work provides. Many are using their superannuation income to support a part-time lifestyle, while also tapping into tools like Transition to Retirement (TTR) pensions.
But before you “clock back in,” it’s important to understand the rules. Returning to work after retirement can impact your superannuation, age pension, and taxes—so good planning is essential to avoid unpleasant surprises.
Can I Still Access My Super While Working?
Yes, but how and when you access it depends on your age and retirement status:
- If you’re over 65, you can access your super at any time, whether or not you’re working.
- If you’re between 60 and 65, you must have officially “retired” (e.g. ended an employment arrangement) to access new contributions. If not, you may still access some of your super via a Transition to Retirement Income Stream (TRIS)—though these accounts pay less tax benefit than full pensions.
- Any new super contributions you receive (e.g. your employer’s 12% Super Guarantee from 1 July 2025) will go into a separate accumulation account. Whether you can access those depends on your updated retirement status.
What About the Age Pension?
If you return to work while receiving the Age Pension, you must report your employment income to Centrelink. This income is counted under the income test, which may reduce your pension.
However, the Work Bonus helps by letting you earn up to $300 per fortnight tax-free. If you don’t use the full $300, it builds up in your Work Bonus income bank, up to $11,800, which you can use in the future if your work income increases temporarily.
Be careful: If you earn too much for more than six consecutive fortnights, your pension could be suspended for up to two years.
Will I Need to Pay More Tax?
If your income (including pension, wages, and super) stays below $18,200, and no tax was withheld, you generally won’t need to lodge a tax return.
But if you:
- Have tax withheld from pay
- Exceed $18,200 in total income
- Or want to claim any deductions or offsets
…then you may need to lodge. Keep in mind that your income also affects:
- Seniors and Pensioners Tax Offset (SAPTO)
- Medicare Levy
- Medicare Levy Surcharge, especially if you don’t have private health insurance.
Can I Keep Contributing to Super?
Yes—but only under certain conditions:
- If you’re aged 67 to 75 and want to claim a tax deduction for personal contributions, you must meet the work test: 40 hours of gainful employment in 30 consecutive days.
- This work test does not apply to non-concessional contributions or salary sacrifice contributions.
- Recently retired and met the work test last year? You may get a 12-month exemption (if your TSB is under $300,000) to keep contributing without meeting the work test again.
Other Things to Watch Out For
Returning to work can bring more income and purpose—but it can also mean:
- A higher tax bill if you sell property or assets in the same year
- A need to review your life or TPD insurance, especially if it’s held inside your super
- Considering private health cover, especially to avoid the Medicare Levy Surcharge
Need Help Navigating Work, Super, and Tax in Retirement?
At Boa & Co. Chartered Accountants, we help retirees and semi-retirees understand the rules, avoid penalties, and make smart financial decisions. Whether you’re thinking about returning to work, making super contributions, or just want to ensure you’re not paying more tax than necessary, our team is here to help.
Call us today on 1300 952 286, email [email protected], or visit www.boanco.com.au to book a confidential retirement planning session.
Let us help you enjoy the freedom of retirement—while staying in control of your finances.