Millions of payment recipients to receive indexation increases
Almost 5 million pension and allowance recipients will see their payments increase later this month.
Payments will rise 1.3 per cent, reflecting the Consumer Price Index (CPI) over the six months to December 2016.
From 20 March, the Age Pension and the Disability Support Pension will rise by $11.20 a fortnight for singles and $16.80 for couples combined.
“The maximum single rate of pension will increase by $11.20 to $888.30 a fortnight,” Minister for Social Services, Christian Porter, said.
“Adult rates of pensions and allowances are adjusted twice a year, in March and September. Pension increases are linked to prices and wages, while allowance increases are linked to the Consumer Price Index.
“These increases help pensioners and allowance recipients keep up with increases in living costs.”
The maximum partnered rate of pension will increase by $8.40 to $669.60 a fortnight for each member of a pensioner couple or by $16.80 to $1,339.20 for a couple combined (including Pension Supplement and Energy Supplement).
“Newstart and Parenting Payment recipients will also see their payments increase,” the Minister said.
“The allowance rate for single people without children will increase by $6.90 to $544.40 a fortnight (including Energy Supplement), while the partnered rate (including the Energy Supplement) will increase by $6.20 to $491.50. This increase benefits people receiving Newstart Allowance, Parenting Payment Partnered, Widow Allowance, Partner Allowance and Sickness Allowance. Recipients of Parenting Payment Single receive an increase of $9.60 to $760.10 a fortnight (including Pension Supplement and Energy Supplement).”
Recipients of Rent Assistance may also benefit from the indexation increase – with the maximum rate of rent assistance for single income support recipients with no children increasing to $132.20 per fortnight.
The maximum rate of Rent Assistance for family payment recipients will increase to $155.26 per fortnight for families with one or two children and to $175.42 for families with three or more children.
Some income and assets limits will also change as result of indexation, including pension assets test limits, up by $3,750 for singles and by $5,500 for couples, meaning recipients can have a higher level of assets before being disqualified from the pension based on the assets test.