Pensions To Increase Later This Month

Approx. 4 million Australians will receive an increase in their pensions and other income support payments from 20 March due to indexation.

Pension payments will increase by $29.20 a fortnight for singles on the maximum rate, and $44.00 a fortnight for couples combined on the maximum rate.

Following these increases, total pension payments for those on the maximum rate, including the base rate and pension supplement, will be:

• $701.10 a fortnight for singles, and
• $1,057.00 a fortnight for couples combined.

According to a media release yesterday from the Minister for Families,  these new rates represent an increase of around $100 per fortnight for singles and around $74 a fortnight for couples combined in pension payments, as a result of the Government’s pension increases in September and indexation.

Pensions are indexed twice a year to the highest increase of three measures: the consumer price index (CPI), the pensioner living cost index, and growth in male total average weekly earnings (MTAWE).
The Government’s Pension Reforms increased the effective benchmark for singles from 25 per cent to 27.7 per cent of MTAWE.

People eligible for the Age Pension, Disability Support Pension (adult rate), Carer Payment, veteran income support payments, Wife Pension, Widow B Pension and Bereavement Allowance will all benefit from the increases.

Parenting Payment will also increase on 20 March, by $26.80 a fortnight for singles.

Adult rates of allowances, such as Newstart, and supplementary payments are also indexed on 20 March each year to the CPI increase for the previous six months. Allowance rates for single people (21 or over, without children) will increase by $6.80 a fortnight.

Rent assistance will also increase.

These increases in payments will be accompanied by an increase in the income and assets cut out amounts. This will see an increase in the amount of income, from for example employment or investments, or the total value of assets, a person can have before their benefit is cancelled.