Millions of age pensioners will soon breathe a little easier after Services Australia today revealed the 20 September Age Pension payment rates.
The three official indicators that determine the rate of any increase: the Consumer Price Index (CPI), the Pensioner and Beneficiary Living Cost Increase (PBLCI) and the Male Total Average Weekly Earnings (MTAWE). YourLifeChoices payment increase estimates made on Friday were virtually spot on.
The PBLCI for the six months leading up to June is sitting at 3.25 per cent. The June CPI increase was 2.2 per cent. That means the new pension payments are based on the PBLCI.
Government payments are indexed in March and September to keep pace with rising cost-of-living. In total, about 4.7 million Australians will receive increased payments when the indexation takes effect on 20 September.
20 September 2023 Age Pension payment rates
The single rate of the Age Pension, with supplements, will increase by $32.70 per fortnight – from $1064 to $1096.70. The rate for each member of a couple, with supplements, will increase by $24.70 per fortnight – from $802 to $826.70.
The Age Pension disqualifying limits have also increased. For a single, the limit has lifted from $2332 per fortnight to $2397.40 – an increase of $65.40. The new limit for couples combined is $3666.80 – an increase of $98.40. For illness-separated couples, the new limit is $4746.80 – an increase of $130.80.
The full suite of rate changes for the Age Pension and supplements can be found here.
JobSeeker and Commonwealth Rent Assistance
Increases to the JobSeeker rate and Commonwealth Rent Assistance have already been locked in and will also take effect from 20 September.
JobSeeker will increase by $16 a fortnight, taking the base rate to $749.20 a fortnight for a single aged 22 and over with no children, Social Services Minister Amanda Rishworth has confirmed.
For a single aged 55 or over (after nine months), the rate will increase from 745.20 per fortnight to $802.50 – an extra $57.30.
For each member of a couple, the increase is $57.80 per fortnight –rising from $631.20 to $686.
The CPI-linked increase is in addition to the $40 increase announced in the May Federal Budget.
The Australian Institute of Health and Welfare (AIHW) estimates that one in 83 Australians aged 65 and over receive a JobSeeker payment. So, around 30,300 older Aussies will receive a boost to their income.
Australians receiving Commonwealth Rent Assistance – a payment widely criticised as being no longer fit for purpose given huge rent rises across the country – will increase by $27.60 per fortnight for singles – from $157.20 to $184.80.
Each member of a couple will receive an extra $26 per fortnight with the allowance rising from $148 per fortnight to $174.
Anglicare Australia chief executive Kasy Chambers says the rent assistance payment “isn’t really fit for purpose”.
“Things have changed since it came in. It’s not doing what it’s designed to do,” says Ms Chambers.
“We’re spending more and more on it, but it’s not having any effect on affordability.”
Push for greater frequency of Age Pension indexation
The Combined Pensioners and Superannuants Association (CPSA) is pushing for the government to not just increase indexation amounts, but indexation frequency as well.
“We call on the government to increase the frequency of special security payment indexation, from half yearly to quarterly, and also to speed up paying these indexation increases,” says CPSA.
National Seniors chief advocate Ian Henschke also advocates greater frequency for pension indexation. He says the federal government should index the pension every three months during times of high inflation to help those most vulnerable.
Are you happy with the pension increase this time around? How often do you think pensions should be indexed? Let us know in the comments section below.
Also read: Age Pension payment rates: 20 September 2023 to 19 March 2024
The increase is OK but could be better. It should be quarterly as is being called for. Also the gap between singles and each member of a couple continues to grow wider. IMO this is grossly unfair on couples.
And so the dance continues – every time my pension increases, so does my rent, which is linked to Government rates (so, yes, I am lucky to that extent in that I pay the same rate of rent as Government tenants) but any increase in pension or supplements results in my landlord taking 25%.
David Ryder – just hope and pray that your partner does not die, or worse still, divorce you. THEN you will be in shock and realise how very lucky you were on the couples pension. When my uncle passed away (my aunt & uncle raised me and were more like parents), I did an analysis and found that her expenses dropped by 18% – but her income (solely aged pension) dropped by 37%. It really annoys me the selfishness of couples who think that 2 people just live double that of a single. You are lucky you have a partner – hang on to them.
Everyone should get the same pension rate. Living arrangements and relationships should not be a factor. I have several widowed elderly friends who have formed new relationships but they will not move in together because it would cause a huge drop in their pensions. And that is just one example of the unfairness of discriminatory payment rates.
I am a married pensioner, paying off our home. With increased rates and not being eligible for rent/mortgage assistance, we could become homeless as we have to pay quarterly rates on top of the mortgage, and money is very tight due to other living cost expenses. Surely the government could support home owners with their fortnightly repayments who have extra expenses than renters.
I guess I must be confused by the article. I looked up my Centrelink profile on MyGov, and couldn’t find anything relating to a September 2023 pension adjustment.
Have I misunderstood what appears in this article?
1 bloke & 3 wives would be doing well on a pension.
Can anyone please tell me where i can find the total of my aged Pension as my partner still works and cannot move forward on their Tax until the ATO has that. It’s only about 2000.00 a year and shouldnt make a difference. I have tried centrelink and the ATO but no info available!!!!