From 1 July, pensioners can receive advance payments of up to a maximum amount of $1,005.75 for singles and $758.10 for each member of a couple in a six month period. This is a significant increase on the previous maximum advance of $500 a year for singles and each member of a couple.
Part-rate pensioners will also have access to increased advance payment amounts, depending on the amount of pension they receive.
For the first time, pensioners can receive multiple advance payments each year up to the maximum rate, compared to only one advance payment under the old system.
This means that pensioners now have more financial flexibility to deal with unforeseen circumstances, such as replacing a broken refrigerator or buying new tyres for their car.
The improved advance payments will be available to Age Pensioners, Disability Support Pensioners, and people receiving carers, wife and veterans’ pensions. The advance payments will be repaid from subsequent pension payments.
The advance payments will increase in line with adult pension rate increases in March and September each year.
In addition, pensioners can now choose to receive around half of the new Pension Supplement on a quarterly basis.
The first quarterly Pension Supplement payment will be available from 20 September this year.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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