On 20 September 4.7 million Australians will receive a much-needed increase to their social security payments. The increases represent the biggest changes to allowances in more than 30 years and the biggest change to pension payments in more than 12 years, with the pension boost driven by increases in the Consumer Price Index (CPI) which exceeded the increase in the Pensioner and Beneficiary Living Cost Index.
Here’s some of the key changes.
Age Pension, Disability Support Pension and Carer Payment are all set to rise by $38.90 a fortnight for singles and $58.80 a fortnight for couples. The maximum rate of pension will increase to $1026.50 a fortnight for singles and $773.80 for each member of a couple, if both members are eligible this means the couple will receive $1547.60 per fortnight combined (including Supplements).
Age Pension, Disability Pension and Carer Payment
|
Single |
Current |
20 September |
Increase |
|
Base Pension |
$900.80 |
$936.80 |
$36.00 |
|
Supplement |
$72.70 |
$75.60 |
$2.90 |
|
Energy Supplement |
$14.10 |
$14.10 |
- |
|
Fortnightly Amount |
$987.60 |
$1,026.50 |
$38.90 |
|
Couple (each) |
Current |
20 September |
Increase |
|
Base Pension |
$679.00 |
$706.20 |
$27.20 |
|
Supplement |
$54.80 |
$57.00 |
$2.20 |
|
Energy Supplement |
$10.60 |
$10.60 |
- |
|
Fortnightly Amount |
$744.40 |
$773.80 |
$29.40 |
Rent Assistance
Rent Assistance payments will increase to $151.60 for singles an increase of $5.80 per fortnight. While couples will receive $142.80 an increase of $5.40 per fortnight. The rent thresholds will also be increasing.
Rent Assistance Payments and Thresholds
|
Now |
No Rent Assistance if your Rent is below Per Fortnight |
Maximum Payment Per Fortnight |
Rent to get Maximum Payment Per Fortnight |
|
Single |
$130.20 |
$145.80 |
$324.60 |
|
Couple |
$210.80 |
$137.40 |
$394.00 |
|
Illness Separated Couple |
$130.20 |
$145.80 |
$324.60 |
|
Rent Assistance 20 September |
No Rent Assistance if your Rent is below Per Fortnight |
Maximum Payment Per Fortnight |
Rent to get Maximum Payment Per Fortnight |
|
Single |
$135.40 |
$151.60 |
$337.54 |
|
Couple |
$219.20 |
$142.80 |
$409.60 |
|
Illness Separated Couple |
$135.40 |
$151.60 |
$337.54 |
*Different rates and thresholds apply to people with children and sharers.
Increases to pension payments will also see an increase to income and asset cut off points, meaning some people may now qualify for a pension who were previously not eligible.
The asset and income thresholds remain the same, however the cut off points have increased.
Assets Test
|
|
Homeowner |
Non-Homeowner |
||
|
|
Current Cut Off |
20 September Cut Off |
Current Cut Off |
20 September Cut Off |
|
Single |
$609,250 |
$622,250 |
$833,750 |
$846,750 |
|
Couple |
$915,500 |
$935,000 |
$1,140,000 |
$1,159,500 |
|
Illness Separated Couple |
$1,077,500 |
$1,103,500 |
$1,302,000 |
$1,328,000 |
Income Test
|
|
Current Cut Off Per Fortnight |
20 September Cut Off Per Fortnight |
|
Single |
$2,165.20 |
$2,243.00 |
|
Couple |
$3,313.60 |
$3,431.20 |
|
Illness Separated Couple |
$4,286.40 |
$4,442.00 |
Giving Older Australians The Option To Work And Earn More
The pension increase comes off the back of the announcement last Friday that pensioners will be able to earn an additional $4,000 this financial year without losing any of their pension thanks to a one-off income credit.
The income credit will be added to pensioners income banks from December, taking the amount they can earn from $7,800 to $11,800 this year (subject to the passing of legislation). Other measures aimed at ensuring older Australians can work without getting unnecessarily kicked out of the pension system will include that pensioners don’t have to reapply for their pension payment for up to two years if their employment income exceeds the income limit. Currently their connection to social security is cancelled after 12 weeks of exceeding the income limit. Pensioners will also be able to retain access to their Pensioner Concession Card and associated benefits for two years.
*The information contained in this article is general in nature and does not take into account any person’s individual objectives, financial situation or needs. It is not intended to imply any recommendation, opinion or advice. You should seek advice from a qualified professional about your particular financial situation, needs and objectives.
