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.
A separate budget measure seeks to expand the pensions loans scheme, which has just 650 participants.
The government wants to open the scheme to everyone aged over 65 years and six months, and increase the maximum fortnightly income stream to 150 per cent of the aged pension rate.
It hopes the $11 million expansion will allow more older Australians to use the equity in their homes to increase their incomes.
There were 2,467,024 aged pensioners as of March 20. Of these, 1.8 million or almost three-quarters were home owners.