Pension increases to be paid from September 20
May 18, 2009
More than 30,000 pensioners in Page will receive a boost to their pension payments as part of the Rudd Government’s Secure and Sustainable Pension Reform announced in last week’s Budget.
The Government says these reforms will improve the adequacy of the pension system, make its operation simpler, and secure its sustainability into the future.
Age pensioners, along with people on disability support pensions, carers and veterans will all benefit.
From 20 September 2009, all single pensioners in Page on the full rate will receive an additional $32.49 a week.
Couple pensioners on the full rate will receive an additional $10.14 combined a week.
Around 6000 local carers will also receive a new, permanent $600 annual supplement to be paid to all Carer Payment and Carer Allowance recipients.
People who receive both Carer Payment and Carer Allowance will receive two supplement payments. This is on top of the pension increases being paid to people receiving Carer Payment.
The Minister for Families, Housing, Community Services and Indigenous Affairs, Jenny Macklin, said the Rudd Government recognises that carers make significant sacrifices caring for the most vulnerable in our community and many are under significant financial pressure.
“Even in these tough economic times when many difficult decisions had to be made in the Budget, the Government has delivered for Australian pensioners and carers,” Ms Macklin said.
The Member for Page, Janelle Saffin, said that pensioners thoroughly deserve this extra support and it was great that even in the hardest of economic times the Rudd Government had delivered.
“These changes have been a long time coming but they deliver a stronger and fairer pension system that will serve pensioners and Australia well into the future,” Ms Saffin said.
“The reforms will improve the pension system, make it simpler, and more sustainable into the future as the population ages.”
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As a single Pensioner I have been told we lose our Utilities and have to pay more for Medication & also extra for Rates Electricity & Telephone is this true. Yours sincerely I welch.
I am the secretary of a seniors association. My members are aged pensioners and nearly are confused over the utilites allowances and other changes to be now known as the Pension Supplement.
I have looked on the web, several sites but as far as $ amounts it is all very unclear.
The pension rises $32.49 from Sept. 20th 2009
What is the dollar value of the Pension Supplement which takes in Utilities, Pharmacy, Telephone etc., or what is the amount of each payment.
I would apprec. an answer by email a.s.a.p.
Thank you Beverley Prior
Far North Coaster contacted the office of Page MP Janelle Saffin, which in turn has sent details about the pension changes to Beverley.
Here’s a basic rundown of the changes, as provided by Ms Saffin’s office:
FAQs – PENSION REFORM
Will the new pensioner supplement replace all of my old supplementary payments?
• From 20 September 2009 the new package will deliver a total increase of $32.49 a week for singles on the full rate and $10.14 per week for couples combined.
• This increase will be delivered via:
o for singles: an increase of $30.00 a week in the base pension, and $2.49 a week in a new Pension Supplement; and
o for couples: an increase of $10.14 a week in the new Pension Supplement.
• Annually, this represents a total increase in permanent payments of $1,689 for singles, and $527 for couples combined.
• The new pension supplement includes the value of the following payments:
o GST Supplement
o Pharmaceutical Allowance
o Telephone Allowance (internet rate)
o Utilities Allowance
o An extra $2.49 per week for singles or $10.14 combined for couples.
Why are we increasing the Pension Age?
•Increasing the age pension age is a responsible change that will help ensure that our pension system is strong and sustainable into the future.
•ginning in 2017, the age pension eligibility age will increase by 6 months every two years until it reaches 67 years of age (in 2023).
•These changes will not affect current age pensioners.
•Only new entrants to the pension system from 1 July 2017 will be affected.
•The 2017 start time for the beginning of the implementation of this change will give senior Australians time to plan for the future.
•The qualifying age for the Veterans’ Service Pension will remain at 60.
• The pension age was set at 65 in 1909. One hundred years later Australia has changed. When the Age Pension was introduced, a man retiring at age 65 would have expected to spend an average of 11 years in retirement.
•By 2017 it is projected that the average number of years in retirement for a 65 year old man will have increased to 19.5 years. A woman of the same age could expect to spend 23.5 years in retirement by 2017.
Won’t my pension drop under the new (50cents in the dollar) Income Test? How is this an increase?
• The new income test of 50 cents for every dollar earned over the income free area, will only apply to new pensioners following 20 September 2009.
• Part pensioners currently receiving the age pension will continue to be subject to the ’40 cents’ income test, through a transitional safety net.
• The purpose of this safety net is to ensure that no pensioner receives a decrease in their benefits and all pensioners receive a pension increase through the Government’s pension reforms.
• This transitional group will continue to receive their part pension under the ’40 cent’ rule until they are better off under the new system
• The time at which a part pensioner switches from the ’40 cent’ test to the ’50 cent’ test will vary depending on the amount of income received.
Why has the Government forgotten couples?
• There was an extensive consultation process to inform the work of the Pension Review.
• Public consultations were held during August and September 2008.
• Over 1,800 written submissions were received during the submission process which closed on 26 September 2008.
• In addition, the Review was informed by a reference group including academics, representatives from seniors, carers and disability groups.
• The findings of the Review were that the pensioners most in need of additional assistance were single pensioners on the full rate of pension
• These increases mean that pensions will address the additional costs faced by singles, as well as providing additional assistance to couples.
• Across all payments, singles will (from Sep 20,2009) receive two thirds of the rate of couples.
Will indexation still occur on 20 September 2009?
• Yes, the next indexation date for pensions will be September 20th 2009.
• Subject to legislation, this indexation point will reflect the new indexation arrangements the Government has put in place through the budget.
• These new indexation arrangements protect the pension increase against future rises in the cost of living and include a new pensioner-tailored index.
• Once passed, pensions will be indexed to the higher of:
o Consumer Price Index
o 27.7% of Male Total Average Weekly Earnings (previously 25% of MTAWE).
o The new Pensioner and Beneficiary Living Cost Index (PBLCI)