20 September is a big day for age pensioners in Australia.
It’s the date when the Age Pension is indexed. The government has officially released the increases, and age pensioners will see an increase of $28.10 a fortnight for singles and $42.40 a fortnight for couples combined.
However, other thresholds and eligibility rules will also change, including the Commonwealth Seniors Health Card (CSHC), Rent Assistance, carer and disability payments.
According to official government figures, the same percentage increase will apply to the Disability Support Pension and Carer Payment taking the total per fortnight, including energy supplement, to $1114.40 for singles and $862.60 for each member of a couple.
Rent Assistance boost
Minister for social services Amanda Rishworth said the government was firmly committed to helping out with the cost-of-living challenges.
And as promised in the 2024-25 Budget, maximum rates of Commonwealth Rent Assistance will also be increased by 10 per cent on the same day, with indexation applied on top.
“This government recognises that many Australians continue to be directly affected by cost-of-living pressures,” Ms Rishworth said.
“Indexation, together with our Budget measures, means maximum rates of Commonwealth Rent Assistance will have increased by around 45 per cent since the Albanese government was elected.
“This indexation will deliver timely boosts to people receiving allowance payments and pensions, ensuring that these vulnerable cohorts have more money in their pockets for everyday expenses.”
Jobseeker increase
For a single recipient of JobSeeker Payment with no children, indexation will deliver a $15.30 increase, bringing their total fortnightly payment to $786.80 (including Energy Supplement).
And people who have previously not been eligible for the Age Pension should check the new figures as the income and asset thresholds have also increased with the indexation.
The previous income cut-off point for a single person was $2444.60 per fortnight. That has been raised to $2500.80. For couples, the cut-off point has been raised from $3737.60 to $3822.40 per fortnight.
The asset levels under the assets test have also increased to the following:
- Single, homeowner $686,250 to $695,500, an increase of $9250
- Single, non-homeowner $938,250 to $947,500, an increase of $9250
- Couple (combined), homeowner $1.031 million to $1,045,500, an increase of $14,500
- Couple (combined), non-homeowner $1.283 million to $1,297,500, an increase of $14,500.
If you were previously ineligible for the pension, supplements or concession cards, it may pay to review your finances as you could now be able to apply for at least a part pension or the CSHC under the new limits.
Income test
To be eligible for the CSHC you must be Age Pension age, an Australian resident, and not receiving any other Centrelink payment. Only an income test is applied to the CSHC.
The following are the increased annual threshold limits:
- Single* $95,400 to $99,025, an increase of $3625
- Partnered (each) $76,320 to $79,220, an increase of $2900.00
- Couple (combined) $152,640 to $158,440, an increase of $5800
CSHC card holders are eligible for cheaper prescriptions, bulk-billing under participating medical practices and, depending on where you live, discounts on energy, rates and public transport. It can potentially save you hundreds, if not into the thousands, over one year.
Find out how to claim the card here.
For a full rundown on the increases, visit here.
Will these increases mean a difference in your life? Why not share your thoughts in the comments section below?
Also read: Centrelink Q&A: Public housing and the Age Pension
It’s only a catch up increase to keep us up with inflation. What really needs to change is the growing gap between what singles are paid and what each member of a couple is paid. Couples are now very hard done by and the addage that two can live as cheaply as one is absolute nonsense.
If you’re single, you still pay the same for your electricity as if you were in a ‘couple’ household. I’ve done it, and it actually came out cheaper in a ‘couple’ household, where the bills are split 50/50, but, now I’m single, I have to put more away each fortnight so that I can afford to pay my bill each quarter, leaving my budget with a great hole in it compared to a ‘couple’ household, even with the increases next week!
The energy allowance ($14.10 per fortnight single), is a very big ‘kick in the mouth’, when it’s just over 10% of what I have to put away each fortnight to be able to afford my quarterly bill.
Being single has no advantage over living as two.
If you have an electricity bill without any discount, you’re with the wrong provider. I used to have a 15% discount, but now have an 18% discount (NSW resident).
Ones living arrangement should have no effect on pension payments which should be the same for every individual.
I know of circumstances where single elderly siblings live in the same house and share the costs just like couples do, but the siblings all get the single rate of pension.
I understand singles in your circumstances must meet some living costs by yourself and I am not suggesting you don’t need all the pension money you can get.
But two sets of payment rates are not fair on couples. It’s discriminatory.
IMO the age pension should be universal and the same amount for everyone.
My single increase has been taken up in increased insurances, and rent. I’m going backwards very quickly.
I don’t drink alcohol, smoke, or gamble, so this isn’t factored into my spending.
Many don’t know about the ‘other’ benchmark of a certain percentage of the Total Average Weekly Male Earnings. This percentage is 41.7% for couples, and 66.33% of the couples rate for the single payment. This percentage hasn’t changed in 32 YEARS!
These rates ‘should’ go up to at least 50% for couples and 70% of the couples rate for singles. Then, and only then, will we be able to ‘afford’ to live on the Age Pension.
It’s about time that the rent assistance is increased, but compared to the rents we are paying in the private market, the assistance is still a very poor rate.
Very sadly though, our fellow Australians on Jobseeker are going it tough. Many of us who are old enough are on the aged pension, or those of us with a disability are struggling to live on our payments. However, those on Jobseeker are still getting more than $300 per fortnight less than the pension.
Contrary to the image created by many of those in politics, they are not all X Box playing youth.
The biggest group on Jobseeker are those over fifty. This has come about because it’s extremely difficult to meet the disability eligibility. Forty per cent have an underlying chronic condition, either illness or injury.
Many are waiting to qualify for the age pension which is now 67. There are those whose occupations were physical in nature- concretors, tilers, brick layers, who can’t do this anymore.
Poverty is a political choice, none of us receiving income support – pensions, Jobseeker, Carers payments are living lives of luxury.
The point has been made here before too, that indexation is a catch up for increases that have already occurred. Indexation should be more frequent, quarterly would be ideal.
Government and business operate calculating CPI, Economic growth, Average Wages and GDP quarterly.