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.