Budget 2009-10: What’s new for Pensioners

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Pensioners who receive the Age Pension, Disability Support Pension, Carer Payment, Veterans’ Service Pension, Income Support Supplement, War Widow/ers Pension, Bereavement Allowance, Wife Pension, and Widow B Pension will receive an increase to pension payments.

The Government will provide an additional $1,689 a year to full rate single pensioners and $527 a year to full rate pensioner couples (combined). This brings the single rate of pension up to two?thirds of the combined couple rate.

Singles

From 20 September 2009 under the new arrangements, full rate single pensioners will receive an additional $32.49 per week through:

- an extra $30.00 per week in the base pension
- an extra $2.49 per week in a new fortnightly Pension Supplement.

Couples

From 20 September 2009, full rate pensioner couples will receive an additional $10.14 per week in the new fortnightly Pension Supplement.

What’s the Pension Supplement?

The Pension Supplement is hoped to simplify payments by incorporating four existing fortnightly and quarterly allowances into a single fortnightly Pension Supplement.

From 20 September 2009, the existing Goods and Services Tax Supplement, Pharmaceutical Allowance, Utilities Allowance, Telephone Allowance (at the higher internet rate), and increased assistance of $2.49 per week for singles and $10.14 per week for couples combined will be included in the new fortnightly Pension Supplement.

To assist pensioners to meet lumpy costs, from 1 July 2010, pensioners will:

- be able to receive around half of the Pension Supplement quarterly
- have greater access to advance pension payments through an increase in the maximum allowable advance and increase in the number of times they can access advances in a year.

From 1 July 2011, the new fortnightly Pension Supplement will be increased further to include the Carbon Pollution Reduction Scheme household assistance.

Along with these increases come some significant pension reforms…. (details on the way).

Proposed changes will not become law until the Budget has been passed by the House of Representatives and the Senate, and signed by the Executive Council.

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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