The September pension indexation comes into effect tomorrow, so what can you expect to turn up in your bank account?
The indexation is linked to whichever is highest of the increase in the Consumer Price Index and the Pensioner and Beneficiary Living Cost Index (PBLCI). The PBLCI is a separate ‘basket’ of goods and services more tailored to people living on government payments.
Older Aussies on the full Age Pension will see an increase of $28.10 a fortnight for singles and $42.40 a fortnight for couples combined.
The income and assets thresholds and disability payments increase, as will Rent Assistance payments. However, many supplements will remain the same.
Are you eligible now?
If you have previously missed out on an Age Pension, part Age Pension or Commonwealth Seniors Health Card (CSHC) due to your income and asset levels, it may be time to go over your paperwork as the threshold levels have all increased.
For the income levels, single people can now earn up to $2500.80 per fortnight without affecting their pension, an increase of $56.20, and the combined couple rate is now $3822.40, per fortnight, an increase of $84.80.
For the asset levels, the new thresholds are:
- 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 $1,031,000 to $1,045,500, an increase of $14,500
- couple (combined), non-homeowner $1,283,000 to $1,297,500, an increase of $14,500
- one partner eligible (couple combined), homeowner $1,031,000 to $1,045,500, an increase of $14,500
- one partner eligible (couple combined), non-homeowner $1,283,000 to $1,297,500, an increase of $14,500.
If you are eligible for Jobseeker the new fortnightly rate for singletons, 55 or over is up from $816.90 to $833.20, an increase of $16.30.
The energy supplement for over-55s on Jobseeker payments has not changed, and sits at $9.50 per fortnight.
Saving you thousands
The CSHC is a concession card to get cheaper healthcare and some discounts if you’ve reached Age Pension age. It can represent thousands in savings over the years.
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 new annual income levels are:
- single, from $95,400 to $99,025, an increase of $3625
- partnered, from $76,320 to $79,220, an increase of $2900
- couple, from $152,640 to $158,440, an increase of $5800.
The same 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.
As announced in the 2024-25 Budget, maximum rates of Rent Assistance will also be increased by 10 per cent on the same day, with indexation applied on top.
Minister for social services Amanda Rishworth said the Albanese Labor government is firmly committed to delivering greater assistance to Australians facing cost-of-living challenges.
“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.
Timely boost
“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.”
The new rates for Rent Assistance are:
- single, $211.20, an increase of $23 per fortnight
- single, sharer, $140.80 an increase of $15.33 per fortnight
- couple, $199, an increase of $21.80 per fortnight.
Centrelink payments are paid in arrears. Your first payment after 20 September will show a partial increase. The second fortnightly payment in October will show the full increase.
Find a full breakdown of the changes here.
Will the changes improve your financial situation? Why not share your experience in the comments section below?
Also read: Major Centrelink change aimed at reducing call wait times
JAN, $28, how is that going to be of any help. TRULY?—WE GET JUST OVER $1000 A FORTNIGHT,
Which might be ok for people who are fortunate to have been paid the super that was owed to them, –or have some other balance to fall back on .
But if as in MY situation that does not apply, and i`m sure there are many others in the same boat, __WHICH i almost know_ centrelink and many other Government “descision makers”
are aware of,__ How far do you think that $28 is going to go ?
It won`t even help with groceries.
Sure we get various concessions BUT they are only small, and others on so called “low incomes” get them too. ( i`m not saying they shouldn`t , but the difference is they have more to”manage” with.
But we pensioners still have the same expenses to try and keep up with as everyone else.
ALL their issues are constantly being brought to air and they get raises __probably not great ones __BUT __ they get better raises than we pensioners get.
AND the politicians get raises constantly AND MUCH HIGHER than we or anyone else gets.
” of coarse they are so poorly paid the poor bastards need it”.
What a joke for us pensioners who live in a co-op house. The rent relief provided by the commonwealth government is ripped from us by the state government. We don’t get to see any of it. Well done whoever is in – it doesn’t matter who – they all just decided to keep it for themselves and yet it is called “rent relief” which means it is for renters.