Media Release by The Hon Jenny Macklin MP

Pension questions answered in the post

Joint Media Release with:

  • Chris Bowen MP, Minister for Human Services

Millions of Australian pensioners will receive letters about the upcoming changes to pension payments over the coming weeks.

Centrelink is currently sending letters to 3.3 million Australian pensioners to explain how their payments will change from 20 September, under the Australian Government’s Secure and Sustainable Pension Reform.

Minister for Families, Housing, Community Services and Indigenous Affairs, Jenny Macklin and Minister for Human Services, Chris Bowen, said the changes would boost the pension payments of Age, Disability, Carer, Wife, and Widow B pensioners.

‘Since these reforms were announced in the May Budget, pensioners have been eagerly waiting to find out how they will benefit from the changes,’ Ms Macklin said.

‘It is important that all of the 3.3 million pensioners read their letters carefully to understand how their payments will change after 20 September.

From 20 September, single pensioners on the maximum rate will receive a total increase of $70.83 per fortnight, bringing their total pension to $671.90.

Couple pensioners combined on the maximum rate will receive an increase of $29.93 per fortnight, taking their payment up to $1,013.

‘This will provide much-needed support to pensioners and ensure that the pension system provides for those in need into the future,’ Ms Macklin said.

‘The Government’s Secure and Sustainable pension reform package represents the most significant reforms to the pension since it was introduced a century ago.’

Mr Bowen said the Centrelink letters would outline in detail the payment changes for each individual pensioner.

‘The payment changes will be automatic and will be paid to pensioners in the fortnight beginning 20 September,’ Mr Bowen said.

‘Centrelink customers do not need to contact Centrelink to receive the boost.’

The Department of Veterans Affairs will contact veterans separately.

This increase includes the rise announced in the May Budget, as part of the Australian Government’s Secure and Sustainable Pension Reform, plus regular indexation.

Total pension payments from 20 September 2009 (full rate, per fortnight)
Base pension Single Couple (combined)
Current rate (pre-20/9) $550.30 $919.20
Indexation $5.50 $9.20
Pension reform increase $60.00
Total base pension (post-20/9) $615.80 $928.40
Pension Supplement
Current total value of allowances (pre-20/9) $50.77 $63.87
Indexation $0.33 $0.43
Pension reform increase $5.00 $20.30
Total pension supplement (post-20/9) $56.10 $84.60
Total pension payments $671.90 $1,013.00

Pension supplements as at 20 September 2009