Pensions rise to keep up with the cost of living
More than three million Australians will soon receive an increase in their pensions to help meet increases in the cost of living, the Minister for Families, Housing, Community Services and Indigenous Affairs, Jenny Macklin, announced.
From 20 March, age, disability and carer pensioners, and veterans’ income support recipients will receive an extra $13.20 a fortnight for singles on the maximum rate, and $19.80 a fortnight for couples combined on the maximum rate.
This March pension indexation increase is driven by wages growth in the six months to November 2010.
Following these increases, total pension payments for those on the maximum rate, including the base rate and pension supplement, will be:
- $729.30 a fortnight for singles, and
- $1,099.40 a fortnight for couples combined.
Since the Government’s pension reforms began in September 2009, the pension has increased by $128 per fortnight for singles on the maximum rate and $116 for couples combined on the maximum rate.
The rate from September 2009 includes the base pension and Pension Supplement. The rate prior to September 2009 includes the fortnightly value of Pharmaceutical Allowance, Utilities Allowance and Telephone Allowance (at the Internet rate).
Under the Government’s reforms, pensions are indexed twice a year to the highest increase of two measures: the consumer price index (CPI), and the pensioner and beneficiary living cost index (PBLCI).
Pensions are then compared to the male total average weekly earnings (MTAWE) benchmark and are increased if necessary to bring them in line with MTAWE.
The Government’s pension reforms also increased the MTAWE benchmark for singles from 25% to around 27.7% of MTAWE.
From 20 March a further one million Australians will also benefit from increases to income support payments such as Newstart and Parenting Payment. Rent Assistance will also increase.
Full details of all rates and thresholds to be indexed on March 20 can be found at http://www.fahcsia.gov.au
