Boost to pension and adult benefit rates

Over 3.9 million pensioners and adults receiving income support will benefit from a rise in pension and adult benefit rates from 20 September 2002.

The boost to payments is due to a rise in the Consumer Price Index (CPI) for the six months to June 2002. The rise in pension rates is due to increases in the CPI and Male Total Average Weekly Earnings (MTAWE).

A single pensioner receiving the full pension will receive an extra $197.60 a year, while each member of a pensioner couple will receive up to an extra $163.80 a year.

The maximum single rate of pension will rise by $7.60 to $429.40 a fortnight, while the maximum-partnered pension will increase by $6.30 to $358.40 a fortnight for each member of a couple.

In 1997, the Coalition legislated to set pensions at 25 per cent of MTAWE, as well as continuing to raise pensions in line with CPI. This provided a significant extra financial safeguard for older Australians and means age pension rates are regularly adjusted to keep pace with the cost of living and increases in living standards.

Since the legislation took effect in March 1998, increases to MTAWE have boosted the maximum single rate of pension by $24.00 a fortnight, while the maximum partnered rate for each member of a pensioner couple has risen by a total of $20.30 a fortnight.

When Labor was in office, they promised to legislate the MTAWE guarantee but never went through with their promise.

The increase in payment rates will also flow through to higher income and assets cut-off amounts allowing more people to become newly entitled to a pension or allowance.

Other payments to rise include the adult allowance rates of Parenting Payment, Mature Age Allowance, Newstart Allowance, Partner Allowance, Widow Allowance, Special Benefit and Sickness Allowance. Other rates to increase include Maximum Rent Assistance, Telephone Allowance and Maternity Allowance.

Details of new pension and adult allowance rates are attached.