More than 90,000 older Australians will soon be able to earn an extra $50 per fortnight without affecting their pensions.
The federal government is expanding the pension work bonus from $250 to $300 per fortnight, allowing people to earn up to $7800 per year without impacting their payments.
The scheme will also be expanded to allow self-employed retirees to earn up to $300-per-fortnight without copping a whack to their pensions.
Senior bureaucrats expect 88,750 pensioners and 1000 allowance recipients will receive a boost to their payments because of the more generous work tests.
Another 1050 people will get a payment for the first time, officials told a Senate estimates hearing on Thursday.