Pension boost starts today

Around 3.5 million Australian pensioners will receive a boost to their household budgets from today with an increase in the pension and the start of the new Clean Energy Supplement.

From today, single pensioners on the maximum rate will receive an extra $35.80 per fortnight. Pensioner couples on the maximum rate will receive an increase of $54.00 per fortnight combined.

Following the latest increase, total pension payments for people on the maximum rate, including the base rate, Pension Supplement and new Clean Energy Supplement, are:

• $808.40 a fortnight for singles, and
• $1,218.80 a fortnight for couples combined.

The new Clean Energy Supplement – part of the Household Assistance Package – means single pensioners will receive an extra $350 a year and pensioner couples will receive an extra $530 a year combined to help with their household bills.

The Gillard Government is delivering for Australian pensioners because we know pensioners have limited room to move in their budgets.

That’s why we delivered the single biggest boost to the pension in more than 100 years.

That’s why we changed the indexation system – so the pension goes up to better reflect changes to pensioners’ cost of living.

That’s why we are delivering the Household Assistance Package – so pensioners have extra support to make ends meet.

Since our historic pension reforms in 2009, the maximum rate of the pension has increased by $207 a fortnight for singles and $236 a fortnight for couples combined.

And the pension will keep going up under Labor.

In contrast, the Liberals want to wreck the pension and make it harder for pensioners to manage their bills.

They have promised to axe the Government’s Household Assistance Package – clawing back more than $1 billion a year in extra support that Labor is delivering to pensioners.

Under an Abbott Government, every single pensioner in Australia would lose more than $350 a year and every pensioner couple would lose more than $530 a year.

Labor will always stand up for Australia’s pensioners – Mr Abbott just wants to make it harder for pensioners.

Labor’s pension reforms mean payments are increased twice a year to keep pace with the cost of living. Increases reflect growth in either the Consumer Price Index or the pensioner living cost index, whichever is higher. The rate is also benchmarked to Male Total Average Weekly Earnings. This pension increase in is driven by higher wages growth.

From today, the Government is also reducing the deeming rates to better reflect returns available to pensioners from their financial investments, benefitting more than 740,000 part-rate pensioners.

Other income support payments, such as Newstart Allowance and Parenting Payment are also indexed and recipients will receive an increase to their payments from today. They will also receive the new Clean Energy Supplement. Full details of all rates and thresholds indexed today:

http://www.fahcsia.gov.au/about-fahcsia/benefits-payments/indexation-rates-march-2013