Pensions increase today
More than 3.5 million Australian pensioners will receive a boost to their payments from today to help them keep up with the cost of living.
Single people receiving the maximum rate of Age Pension, Carer Payment and adult Disability Support Pension, as well as veteran income support recipients, will receive an extra $17.10 a fortnight.
Pensioner couples on the maximum rate will receive an increase of $25.80 a fortnight combined.
Following this latest increase, total pension payments for pensioners on the maximum rate, including the base rate and pension supplement, will be:
- $772.60 a fortnight for singles, and
- $1,164.80 a fortnight for couples combined.
In September 2009 we delivered historic reforms to the pension system, including the single biggest boost to the pension in history, a new pension supplement, an annual carer supplement, an improved indexation system and a seniors’ work bonus.
In the past three years, the maximum rate of the pension has increased by $172 a fortnight for singles and $182 a fortnight for couples combined.
Today’s increase to the pension is due to the improved indexation system we delivered three years ago and reflects higher wages growth in the six months to May 2012.
Pensions are increased twice a year to reflect changes in pensioners’ cost of living and wages. The pension is increased to reflect growth in the Consumer Price Index or the Pensioner and the Beneficiary Living Cost Index, whichever is higher. When wages grow more quickly than prices, the pension is increased to reflect growth in Male Total Average Weekly Earnings.
We understand that pensioners have limited room to move in their budgets. That’s why the improved indexation system is so important – it helps ensure that when pensioners’ costs of living go up, the pension goes up with it, and means pensioners can share in our nation’s prosperity.
We have delivered for Australia’s pensioners and we’ll keep delivering to make sure they get the fair go they deserve.