Pension increases today

From today more than 4.5 million Australians, including 3.4 million pensioners, will begin receiving an increase in their income support payments to help meet their cost of living.

Single people receiving the maximum rate of Age Pension, Disability Support Pension and Carer Payment, as well as veterans’ income support recipients, will receive an extra $6.70 a fortnight. Pensioner couples on the maximum rate will receive an increase of $10.00 a fortnight combined.

Following the latest increase, total pension payments for people on the maximum rate, including the base rate and pension supplement, will be:

• $755.50 a fortnight for singles, and
• $1,139.00 a fortnight for couples combined.

As part of our historic pension reforms, this Labor Government delivered the biggest increase to the pension in its 100 year history, and a fairer indexation system that helps ensure the pension keeps up with the cost of living.

Pensions are indexed twice a year to the higher increase of the Consumer Price Index, the Pensioner and Beneficiary Living Cost Index or growth in Male Total Average Weekly Earnings. This month, the pension increase is driven by growth in Male Total Average Weekly Earnings.

Labor understands that pensioners have the least room to move in their budgets. That’s why it’s so important that when the cost of living goes up, the pension goes up to match it.

Since the Government’s reforms, the maximum rate of the pension has increased by $154 per fortnight for singles and $156 per fortnight for couples combined.
Labor has delivered for Australia’s pensioners and we’ll keep delivering to make sure they get the fair go they deserve.

Recipients of other income support payments such Newstart and Parenting Payment will also receive an increase this month.

Starting today, Parenting Payment will increase by $7.00 a fortnight for singles. Newstart Allowance, Widow Allowance, Partner Allowance and Sickness Allowance will increase by $2.90 a fortnight for singles and $2.60 each for couples. These allowances are indexed to the Consumer Price Index.

Rent assistance will also increase.

Full details of all rates and thresholds can be found at: Rates Indexation March 2012