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”.
I certainly agree with your comments, as I’m in the same boat.
I’ve seen rises about the same in the past 30+ years. This is a slap in the mouth with a wet fish.
All comments are so true, yes, my aged pension has gone up $28 PER FORTNIGHT yet my rent assistance has gone down. Talking of supplements do you know that in 4 years it has risen $12 per fortnight and energy supplement is the same as it was 4 years ago. Car registration (20% discount) came in 2 days after mine was paid, Electricity rebates are still coming for gated communities on embedded grids so I have gained gone backwards in my income and had to just cover the increased cost of living. Someone is definitely asleep on the job
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.
Yes, I agree with your problem. I used to live in community housing many years ago, but had to leave as the price of the rent was more than in the private market.
This is how Housing work out your rent (single pensioner):
Add your basic rate plus energy supplement $1047.10 + $14.10 = $1061.20, and multiply by 25% or .25 = $265.30, and if, as you are, in community housing, then they take the full amount of the rent assistance – $211.20 = $476.50, which is still less than I pay in private rental accommodation now.
Wholeheartedly agree with previous comments. The fact that we have allowed thousands, yes THOUSANDS of visitors whose visas have expired, and spends MILLIONS on there welfare and accomodation, plus all the thousands of “Humanitarian” visas that are been dished out like lollies, again costing absolute millions, But Albo doesn’t give a fig about its citizens, who have contributed for decades paying taxes. Popped into the supermarket yesterday for a few ESSENTIALS and guess what, there goes our fortnightly increase!!!
$23 a fortnight rent raise will not help my son much, whose rent has just increased by $200 a fortnight
The article doesn’t make it clear that the full increase won’t kick in for another fortnight after this week’s pension payment part increase. I strongly suspect that some of the above comments are generated by various political interests posing as pensioners- it’s a common ploy by opposition parties. They use radio talkback, letters to newspapers, social media and websites like this one to throw darts at government policies. I don’t imagine that any pensioners are refusing the increases because it isn’t enough!
I agree with all the comments, particularly Grumpy Grandpa. All the bally who proceeded September 20 gave the impression that we pensioners would be given a fortnightly increase much higher than any of the previous March – September increases. Naturally, my wife and I waited to see how much INCREASE we would get. Good old Centrelink DECREASED our fortnightly pension. We are part pensioners, but until now we have never had a DECREASE. Centrelink’s formula for working out our entitlements mystifies me as in the period March to September 2024, we have had substantial increases in the cost of food, house and car insurance, car registration, energy, council rate, water rates and private health which at age 83 we do need as the health problems do increase with ageing. I ask Centrelink, where is the fairness in reducing our pension when COL has skyrocketed?
Who’s been smoking something funny? To say ‘Big Age Pension Increase’ – you certainly have to be taking something! Being a single pensioner, $28 a f/n is not going to go anywhere NEAR covering increases in the mandatory bills like rates and insurances. Insurance increases are a total rort – I live in a Brisbane suburb, but with my latest home insurance, I was given the excuse that I was in a ‘cyclone zone’! (despite official Govt details showing north of Rockhampton). The $200 rebate on rates has not changed for years – why can’t that be indexed? I can only cut costs so much, I have a small but comfortable for-me house, absolutely no way will I take in a boarder. I have always been single, and after taking some years off working to care for elderly parents, I worked my butt off in lower paying jobs to scrimp and save to buy a house – thank heavens I did! But what minimal super I did have is getting dwindled at a rapid rate. I honestly don’t know how much longer I can survive. As they say – you can only stretch a piece of string so far.
Out Centrelink and in an Independent Pension Tribunal. That would be a vote catcher if some brave political party went to the next federal election with that policy.
The other way to kill off Centrelink is to set up a Universal Pension. New Zealand and several other countries have implemented this. If it is also good enough for Bangladesh to have a Universal Pension system, it is good enough for Australia.