The Age Pension will receive its biggest boost in 12 years when the second of the twice-yearly reviews takes effect from 20 September.
Inflation is biting. The 50 per cent fuel excise cut will end this month. And the Reserve Bank is tipped to raise interest rates tomorrow by 50 basis points.
So any relief for pensioners will be welcomed but will only be short-term. And that’s even given the announcement to allow older Australians to earn more money before their pension payments are cut.
From 20 September 2022, the Age Pension, Disability Support Pension and Carer Payment will rise by $38.90 a fortnight for singles and $58.80 a fortnight for couples.
New Age Pension rates as of 20 September 2022
The new Age Pension rates will take the single fortnightly payment from $987.60, with supplements, to $1026.50.
Read: Review Age Pension rate every quarter, say experts
The fortnightly payments for each member of a couple will rise from $744.40 to $773.80.
The pension was increased by 2.1 per cent in March. At the time it was the biggest rise in almost a decade.
Fortnightly rent assistance will increase to $151.60 for singles – an extra $5.80 per fortnight. Couples will receive $142.80 – a $5.40 per fortnight increase.
No-one left behind: Social Services Minister
The Jobseeker payment will rise by $25.70 a fortnight to $677.20, including the Energy Supplement.
Social services minister Amanda Rishworth says the September pension increase is the biggest in 12 years.
“This indexation increase will help those on government payments keep up with the cost of living,” she said in a statement.
Read: Why cost-of-living pressures bite pensioners the hardest
“Our guiding principles as a government are ensuring no-one is left behind and no-one is held back.
“We want to ensure Australia has a strong social security safety net to protect our most disadvantaged.”
The pension rise was driven by increases in the Consumer Price Index, which exceeded the increase in the Pensioner and Beneficiary Living Cost Index.
Inflation rose 1.8 per cent in the June quarter and 6.1 per cent annually, says the Australian Bureau of Statistics.
Welfare bump ‘welcomed’
Council on the Ageing chief executive Ian Yates said the new rates were “absolutely welcomed” given the costs of many basics such as petrol, food, rent and utilities, had soared.
The increase, especially for renters and those relying on a full Age Pension, was essential to help them make ends meet.
“If ordinary pensioners are feeling the pinch, renters are in real strife,” Mr Yates said.
Edwina MacDonald, acting chief executive for the Australian Council of Social Service (ACOSS), said the increases were not enough.
“It’s really just a drop in the ocean at this point and as the non-discretionary inflation is higher than the CPI, they are still going backwards in terms of what they can afford to buy at the moment,” she said.
ACOSS has been calling for an increase in social security payments of at least 35 per cent.
The September indexation comes after the federal government last week announced age pensioners could earn an extra $4000 this financial year without losing any payment.
Rent Assistance increases 20 September 2022
JobSeeker Changes 20 September 2022
Pension thresholds 20 September 2022
Low Income Health Care Card changes September 2022
Will these increases make a big difference for you? Is the Age Pension playing catch-up? Should it be indexed more often than twice a year? Share your thoughts in the comments section below.
Pensioners will be drowning in coffee soon, stand by all medical professionals for an increase in heart attacks.
But wait, isn’t it time that deeming rates were increased as well in line with market forces, after all its only fair isnt it.
six months to go and i will be on the oldies rock an roll myself
No need to change the deeming rates, they never bought them down. With inflation driving rates up, we’ll soon be able to earn what we have been deemed as being able to ear right through the down times.
Josh frydenburg announced on jul 14 2019 that deeming rates were being reduced backdated from jul 1 2019 due to fed reserve rates being reduced.
Now that rates are increasing then obviously rates should start to increase also. You cant have it both ways. One can only drink so much coffee aftger all eh
No need to change the deeming rates, they never bought them down. With inflation driving rates up, we’ll soon be able to earn what we have been deemed as being able to earn right through the down times.
Im a little ahead of you. I’m eligible in just over 4 months, and I’ll be celebrating, no more overseas travel restrictions! Yey!
Rather than have the deeming rates increased, I’d rather the ‘benchmark’ percentage against the Male Total Average Weekly Earnings be raised. Currently the ‘benchmark’ percentage is 41.76 for couples. The ‘should’ increase it to at least 50%, then the single rate is still at 66.6%, which I’d be happy with.
The only thing that would be in the way is the politicians – no one would even think about changing the status quo, on either side of politics. This rate hasn’t changed since 2014!
Rather than muck around with deeming rates and asset and income tests I would much prefer Australia to become like a first world country like NEW ZEALAND and just pay out the pension universally with no ties. and watch Centrelink workers squirm as they try to keep their jobs for life.
I believe the increase should be made quarterly not six monthly. This would help all pensioners get by. Also, I believe all members of parliament should have their wages frozen for 12 months.