Age pensioners will receive an extra $19.60 a fortnight for singles and $29.40 for couples when the March indexation comes into effect tomorrow.
While the minister in charge claims it will ease the cost-of-living pressures, representative groups are less than impressed, with one group claiming pensioners are being “disrespected and discarded”.
Including Pension Supplement and Energy Supplement, the maximum rate of pension will be $1116.30 a fortnight for singles and $1682.80 a fortnight for couples.
The Commonwealth Rent Assistance (CRA) will increase by just $3.40 a fortnight.
The government also announced that from 20 September, there will be a fortnightly increase of $14.40 to $815.90 for Jobseeker recipients aged over 55 after nine months on the payment.
Disqualifying limits
The pension disqualifying income limit increases to $2436.60 single (up $39.20 fortnightly) and $3725.60 couple combined (up $58.80).
Pension disqualifying assets limits also increase – single homeowner $674,000 (up $6500), single non homeowner $916,000 (up $6500); couple combined homeowner $1,012,500 (up $9500), couple non homeowner $1,254,500 (up $9500).
The complete indexation figures can be found here.
Minister for social services Amanda Rishworth claimed the increases would ease escalating consumer prices.
“Our number one priority is addressing inflation and cost-of-living pressures,” Ms Rishworth said.
“These challenges highlight the importance of regular indexation to ensure that payment recipients have more money in their pockets for everyday expenses.”
“Pension recipients are some of the most vulnerable members of our communities, many having worked all their lives contributing to our society or caring for a loved one.
“This regular indexation is in addition to our boost to working age and student payments announced in last year’s Budget.
“This increase, which took effect on 20 September 2023, also included the largest increase to maximum rates of Commonwealth Rent Assistance in 30 years.”
Being ‘cheated’
However, representative bodies are less than impressed.
Fair Go for Pensioners (FGP) said the increase meant pensioners were “still being cheated”.
“This miserly rise is an equivalent of two cups of coffee and a newspaper, and does little to correct years of decline,” said Victorian president Joe Montero.
“But it does reveal the mind of government, which is, that those on Centrelink payments don’t matter. Pensioners are also being cruelly marginalised in every way.”
“Ever since 2008 and the current adjustment system, the twice-yearly adjustments have been so underpaid that age pensioners are now short-changed thousands of dollars every year. The results have been increasing poverty, negative impacts on health, rising depression, and exclusion from participation in the community. This is wrong.
“Age pensioners are angry, feel cheated, disrespected, and discarded. After all, this is the generation that spent a lifetime working to build this country and paid tax.”
“The nation owes them the right to spend the last part of their life in dignity and reasonable comfort.
National Seniors Australia (NSA) welcomed any increase in payments but said pensioners who rent are falling behind.
Renters falling behind
NSA chief executive Chris Grice said the increases weren’t enough for the 325,000 Australians aged over 65 who rent.
“This figure is growing,” said Mr Grice.
“We are calling for Commonwealth Rent Assistance (CRA), which is currently linked to overall CPI, to be tied specifically to the rental component of CPI.”
“Unfortunately, the increase to the maximum rate of CRA of $3.40 per fortnight simply isn’t enough. According to the ABS, rents were up 7.4 per cent in the year to January compared to 3.4 per cent for overall inflation (which is used to index CRA).
Mr Grice said NSA would like the maximum rate of CRA to be increased and indexation for this payment tied to changes in rental prices rather than overall CPI.
“An increasing number of older people cannot afford to own a home and are stuck struggling to maintain housing in an increasingly unaffordable rental market,” he said.
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